Consumer complaint received 2025-04-16 00:00:00
Product: Checking or savings account — Savings account
Issue: Managing an account — Problem accessing account
Company: Paypal Holdings, Inc
State: FL

Complaint narrative:
I have had my Paypal account for about 7 years and never had any problems. I also opened a seperate savings account with Paypal about two years ago. My XXXX XXXX XXXX was linked to my paypal as a payment method. Lay week Last week I noticed that my XXXX had an unrecognized charge on it from XXXX XXXX XXXX for XXXX charged through my paypal account. I called XXXX and they credited the money back to my card and canceled the card and are sending me a new card with a new account number on it. 
The next day after taking care of this with XXXX, I got a notification con Paypal that they were limiting my account access until I update my security settings. I changed my password, ans had to select new security questions and answers. They also wanted me to send them a copy of my XXXX credit card statement which I did, although not sure why they would need that. Then they wanted to make a deposit to my XXXX card for my to verify the amount. Well I couldn't do that because the card had already been canceled so that card number was no good anymore. I also tried to just delete the card altogether as a payment method but it wouldn't let me do it. The next day Paypal send a notification that they were permanently closing my paypal account for " security reasons. '' I had a seperate savings account with Paypal as well with {$1100.00} in it. It was not linked to my Paypal balance in any way, but Paypal took the money in my savings account and won't release it for four months. They said they were holding it for four months for any charges that might come through on my Paypal account but that is not true because they closed my PayPal account so that it can no longer be used for anything, so how can any charges be made to my paypal if it's closed? My savings account was not linked in any way to my paypal balance so why did they take my savings money off it wouldn't have been used to cover any purchases through Paypal anyway? 
That money in my savings was all the money I had to my name. I rarely used my paypal account for anything other than to transfer {$2.00} a month from my savings to my paypal balance to cover my XXXX XXXX subscription. There is no reason for them to have taken all of my money in savings. I thought that money was safe but clearly I was wrong. When I asked why this is happening the only thing they said was " security reasons '' and that allowing my account to remain open would put other users of the platform at risk. What is that supposed to mean? And why don't they tell me what happened to cause this? Considering it's my financial account I have the right to know what's going on with it and why this happened because the way it looks now, they just stole over a XXXX dollars of my money without cause. They have no reason to take all the money in my savings account. This was very extreme to do this to me over one unauthorized charge to my XXXX through paypal that was already refunded but XXXX and is taken care of, especially considering I have used paypal for about 7 years and never had a single problem. I want Paypal to release my money in my savings account so I can put it somewhere else where it is safe like I used to think it was with Paypal.

Company response to consumer: Closed with non-monetary relief