Consumer complaint received 2025-07-24 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: TX

Complaint narrative:
Subject : Unresolved Refund PayPal Closes Case Without Evidence or Remediation Summary of Complaint : This formal complaint is filed against PayPal , Inc., for failing to properly disburse a refund of {$5400.00} USD related to a transaction that PayPal unilaterally canceled on the grounds of alleged policy violations without identifying the specific policies in question or providing any verifiable justification. 

Despite repeated requests, PayPal has refused to offer any tangible evidence that the refund was completed. Their sole response, dated XX/XX/year>, merely states that the refund was issued. However, no such funds have been received in my bank account to date. No acquirer reference number ( ARN ), trace ID, bank confirmation, or any proof of transmission has been provided. 

My financial institution has formally verified that no refund from PayPal has been received or is pending, and has confirmed that no such transaction exists in their records. 

Previously, a related complaint submitted via the XXXX XXXX XXXX XXXX XXXX ) was also marked " resolved '' by PayPal, despite no meaningful action being taken. The company repeated its position without providing new evidence or resolving the financial harm. 

Consequences of PayPals Actions : Due to PayPals unjustified transaction cancellation and unsubstantiated claim of refund completion, I incurred substantial financial and logistical damages, including but not limited to : Forfeiture of the vehicle purchased : The transaction was related to a vehicle acquired at auction. Because PayPal failed to disburse the payment and later falsely claimed the refund was issued, the vehicle was not released, and I was unable to recover it. 

Loss of storage rights : The storage period for collecting the vehicle expired due to PayPals mishandling of the transaction, potentially resulting in impoundment or resale of the item. 

Irrecoverable administrative costs : Costs related to auction fees, bidding preparation, and communication with the auction house have been rendered non-refundable due to PayPals breach of process. 

Business disruption : This vehicle was intended for professional or logistical purposes. Its unavailability caused material delays and losses in business activities. 

Emotional and financial distress : Extended engagement with PayPal 's customer service, including time spent contacting support, disputing the case, and following up on the missing funds, has caused undue stress, loss of time, and financial uncertainty. 

Summary of Violations : Failure to provide verifiable refund confirmation ( ARN or bank trace ). 

Misrepresentation of case status as " resolved '' despite unresolved financial impact. 

Failure to disclose policies allegedly violated. 

Denial of due process to contest or appeal the transaction cancellation. 

Negligent disregard of the real-world consequences for the customer. 

Attachments Provided : PayPals XX/XX/year> statement claiming refund completion. 

Correspondence and response from the prior BBB complaint. 

Bank statement showing no refund received. 

Documentation regarding the auction vehicle and storage deadline. 

I respectfully request that the Consumer Financial Protection Bureau ( CFPB ) conduct a full investigation and compel PayPal to either : Provide verifiable proof of the refund via standard financial channels ( e.g., XXXX, XXXX ID ), or Reissue the refund immediately to resolve the financial loss and restore trust.

PayPals conduct constitutes a clear failure of duty, breach of financial responsibility, and unjust enrichment through continued possession of funds that have not been returned to the consumer. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation