Consumer complaint received 2025-08-20 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem — 
Company: Paypal Holdings, Inc
State: CO

Complaint narrative:
Below is a summary of events as described by my XXXX XXXX XXXX representative. I am in agreement with the recollection of the events below. Below are the dates, amounts, and actions I and my credit union rep took to try to resolve this issue. 

On XX/XX/XXXX XXXX came into our credit XXXX. XXXX had noticed a large transaction for {$2900.00} coming out of his account at XXXX XXXX XXXX XXXX going to PayPal. XXXX did not see this transaction in his PayPal account so he was a bit concerned as XXXX did not make a purchase on PayPal for that amount and only uses PayPal for small transactions. XXXX XXXX completed a dispute for this transaction and the funds were taken from PayPal back to XXXX XXXX XXXX account. 

On XX/XX/XXXX XXXX came into the XXXX XXXX and spoke to me. He let me know about the dispute that was filed. He also let me know that after the dispute his PayPal was now showing - {$2900.00}. I offered to help XXXX and after initially looking at his PayPal I could not find the transaction in the history. We decided to call PayPal together and a representative we worked with explained to us that the {$2900.00} that was taken out of his XXXX XXXX account had gone into his PayPal and then went to a card. The representative could not tell us who the card belongs to or what financial institution it was with. The representative explained that since his account was in the negative he had certain features blocked on his PayPal account and that he would need to take action in order to get those features back. XXXX of the actions was to take care of the negative balance. I explained to the representative that the reason the account was negative was because of the transaction to the card and that we would like to dispute that transaction which the rep said we would not be able to dispute until the account was made whole. After getting of the phone and navigating PayPal I was able to find the {$2900.00} transaction to the card was actually archived in the transaction history. XXXX reset his password and security questions for PayPal. After some digging, I was able to help XXXX figure out how to the dispute the {$2900.00} transaction that went to the mystery card so a dispute was filed and a case was open. 

At some point XXXX let me know he received an email from PayPal stating his case has been closed and that the dispute was declined. Accord to the details PayPal stated that the activity was consistent with his previous PayPal activity and encouraged us to dispute the transaction with the merchant. There was no merchant for this transaction so there was not a merchant to reach out to. XXXX came in on XX/XX/XXXX and we once again called PayPal. We spoke to a XXXX who let us know the last XXXX numbers of the card the payment went to. XXXX was unable to tell us who the card belonged to or which financial institution the card was from. XXXX stated he does not have any cards that end in those numbers and that this activity was not normal for him. XXXX expressed his concern to XXXX about feeling like he was not notified of this happening via a phone call and felt like PayPal did not hold up to their obligations by not keeping his account safe. XXXX also felt PayPal should have taken more action due to the transaction being so high where his normal transaction amounts are in the double digits. XXXX said she would note this information and would file an appeal. XXXX later notified me that the case for the appeal was closed stating that after XXXX investigation the decision to not dispute the transaction still stood.

Company response to consumer: Closed with monetary relief