Consumer complaint received 2026-04-07 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Other transaction problem — 
Company: Paypal Holdings, Inc
State: GA

Complaint narrative:
To Whom It May Concern, I am writing to formally file a complaint regarding unauthorized transactions and the mishandling of my account and dispute by PayPal on XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/XXXX, I received {$300.00} in my PayPal account from a family member to assist with restoring my electric service, which had been disconnected due to non-payment. Shortly after receiving the funds, PayPal placed a {$99.00} hold on my account despite my account being established since XXXX and having recent activity. Additionally, I was charged a fee because the payment was sent via invoice, which I was not properly informed about, as neither the sender nor I is an experienced PayPal user. The more serious issue occurred while I was on the phone with a PayPal representative, seeking clarification about the hold. During that call, I observed multiple unauthorized transactions being processed in real time from my account to individuals I did not know and had never done business with. I immediately reported this to the representative, secured my account by locking my card, and changed my password. Despite being on the phone with PayPal support and later a supervisor, unauthorized withdrawals continued to occur. The transactions included amounts of {$15.00}, {$50.00}, {$150.00}, and {$50.00}, totaling {$260.00}. These transactions occurred within approximately one hour, while I was actively seeking assistance. My account balance dropped rapidly, and PayPal took no effective action to freeze or secure my account during this period. I find it deeply concerning and unacceptable that : - PayPal failed to immediately secure my account despite being notified of active fraud. - I was incorrectly accused of authorizing these transactions. - Representatives placed me on extended holds while additional funds were being withdrawn. - Two representatives disconnected calls, requiring me to repeatedly call back. - My disputes were closed within less than two hours, before a proper investigation could reasonably take place, and in some cases while I was still on the phone. Furthermore, I received responses via PayPal messaging from the recipients of the fraudulent payments, stating they would not return the funds and claiming they had no knowledge of how the funds were received. I have preserved and submitted all screenshots and documentation as evidence through the appropriate PayPal channels. This situation raises serious concerns regarding PayPals compliance with consumer protection laws, including but not limited to : - The Electronic Fund Transfer Act ( EFTA ) - Regulation E - Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) PayPals failure to act swiftly to prevent further unauthorized transactions, combined with the premature closure of my disputes, may constitute a violation of these protections. As a direct result of this incident, I was forced to make an extremely difficult and unwilling decision to temporarily remove my son from our home and have him stay with friends. My son requires the use of a XXXX XXXX XXXX XXXX at night, making access to electricity medically necessary for his health and safety. This situation created significant emotional distress and hardship for my family and could have been avoided had appropriate action been taken promptly. As a result of this incident, I have suffered financial loss, emotional distress, and significant inconvenience. I am a parent of a child XXXX XXXX XXXXXXXX, and these funds were critical for maintaining essential utilities in my household. The impact of this situation has been severe. I am formally requesting the following actions : 1. Immediate reopening and thorough investigation of all disputes related to these unauthorized transactions. 2. Full reimbursement of all unauthorized withdrawals totaling {$260.00}, as well as any associated fees. 3. A detailed explanation of how these transactions were allowed to occur while my account activity was being actively reported as fraudulent. XXXX. Confirmation of corrective measures taken to prevent similar incidents in the future. If this matter is not resolved promptly, I am prepared to escalate this complaint by filing a formal report with the Consumer Financial Protection Bureau ( CFPB ), the Federal Trade Commission ( FTC ), and pursuing legal action. SincerelyXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation