Consumer complaint received 2026-06-09 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Money was not available when promised — 
Company: Paypal Holdings, Inc
State: TX

Complaint narrative:
Subject : PayPal Withholding Business Funds, Repeated Documentation Requests, and Failure to Provide Clear Resolution Process I am submitting this complaint regarding PayPal 's continued withholding of funds belonging to my business and what appears to be an unreasonable and constantly changing documentation review process. My company is a legitimate service-based business that has successfully completed work for customers. Despite providing substantial documentation and repeatedly complying with PayPal 's requests, PayPal continues to hold my funds and request additional information without providing a clear explanation of what specific requirements remain unmet or what is needed to resolve the matter. Over the course of this review, PayPal has requested numerous documents, including : * Business licenses * Service agreements * Customer contracts * Business verification information * Operational details regarding how my company conducts business * Additional supporting documentation related to transactions Each time I submit the requested documents, PayPal either requests additional information or claims that previously submitted documents are insufficient. For example, I have submitted electronically generated contracts that are clearly legible and professionally prepared, yet I have been told they are " not legible '' and asked to resubmit them. This has occurred multiple times. What is especially concerning is that PayPal has requested information that I believe contains proprietary business information and trade practices that are not necessary to verify the legitimacy of completed transactions. While I understand the need for reasonable verification procedures, the scope and ongoing nature of these requests appear excessive and burdensome. The transactions in question involve services, not physical goods. The customer has confirmed on multiple occasions that the services were completed as agreed. Despite customer confirmation and the completion of the contracted work, PayPal continues to withhold payment. As a result of PayPal 's actions, my business has suffered significant financial harm, including : * Inability to access funds earned through completed services. * Disruption of normal business operations. * Cash flow shortages that have prevented me from taking on new projects. * Loss of at least one business opportunity due to lack of access to my funds. * Damage to my company 's reputation with customers and vendors. * Additional legal and administrative burdens associated with collecting payment for services already rendered. Perhaps most frustrating is the lack of transparency throughout this process. PayPal has not provided a definitive list of all documents required for review, nor have they provided a clear timeline for when the review will be completed or when my funds will be released. Instead, the process appears open-ended, with new requests being issued repeatedly over an extended period. I believe consumers and small businesses deserve clear standards, reasonable verification requirements, and timely access to funds once legitimate transactions have been verified. In my case, PayPal 's actions have created unnecessary hardship and uncertainty despite my full cooperation. I respectfully request that the CFPB investigate this matter and assist in obtaining : 1. A detailed explanation from PayPal regarding the legal and factual basis for continuing to hold my funds. 2. A complete list of all documentation PayPal requires to complete its review. 3. A specific timeline for resolution and release of funds. 4. A review of whether PayPal 's repeated and expanding documentation requests constitute an unfair or unreasonable burden on small business customers. 5. Immediate release of any funds that are not legitimately subject to dispute or regulatory restriction. I have made every effort to comply with PayPal 's requests and resolve this matter directly. However, after repeated submissions and continued delays without meaningful progress, I am seeking regulatory assistance to ensure fair treatment and timely access to funds earned through legitimate business activity. * * Business Name : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX PayPal Account Email : XXXX XXXX XXXXXXXX * * Amount Being Held : * * {$6100.00} * * Dates of Review/Hold XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Complaint Against : * * [ PayPal ] ( https : //www.paypal.com Thank you for your attention to this matter. I am prepared to provide supporting documentation, correspondence, customer confirmations, and records of all requests made by PayPal during this review process.

Company response to consumer: Closed with non-monetary relief