Consumer complaint received 2025-12-31 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem when making payments — 
Company: Paypal Holdings, Inc
State: UT

Complaint narrative:
I am filing this complaint regarding an unresolved PayPal Pay in 4 loan servicing and accounting error that has resulted in incorrect delinquency status, improper collection activity, and refusal by PayPal to correct its internal records. 

On XX/XX/year>, I made a purchase at XXXX XXXX XXXX XXXX XXXXXXXX in the amount of {$1000.00} using PayPals Pay in 4 installment loan product. The Pay in 4 plan split the purchase into four scheduled installment payments of approximately {$260.00} each, charged to my XXXX XXXX issued by XXXX XXXX. The PayPal transaction ID for the purchase is XXXX. 

I initially filed a merchant dispute through PayPal regarding the XXXX XXXX transaction. That merchant dispute was assigned PayPal case ID XXXX and was decided in the sellers favor. The case was closed. I understand and accept that decision and am not disputing or appealing the merchant transaction in any way. 

After the merchant dispute was closed, I mistakenly opened disputes with my credit card issuer, XXXX XXXX ( XXXX XXXX ), for all four individual Pay in XXXX installment charges ( merchant name listed as Pypl Payin4 ). These card disputes were opened on XX/XX/year> and were associated with Apple Card dispute case numbers XXXX, XXXX, XXXX, and XXXX. PayPal acknowledged receipt of these card disputes under case XXXX XXXX, XXXX, XXXX, and related cases .

Shortly after opening these XXXX XXXX disputes, I realized disputing the Pay in 4 installment charges was incorrect. I therefore cancelled all four XXXX XXXX disputes. XXXX XXXX has provided written confirmation that the disputes were withdrawn, completed, and closed, and that any temporary credits applied during the investigation were reversed back. XXXX XXXX has confirmed that no further action can be taken by the bank and that the matter must be resolved by PayPal. 

While the XXXX XXXX disputes were briefly open, XXXX XXXX temporarily reversed the installment payments back to PayPal. These reversals occurred around XX/XX/year> and were an automatic result of the disputes being opened. After the disputes were cancelled, those reversals should have been reconciled and properly reapplied to my Pay in 4 loan balance.

PayPal failed to do this. PayPal did not reconcile the temporary reversals after the disputes were cancelled and closed. As a result, PayPals internal Pay in 4 loan ledger now incorrectly shows that XXXX payments have been made, that the full {$1000.00} balance is past due, and that my account is delinquent.

PayPal is now sending payment demand emails and collection notices stating that my Pay in 4 plan is past due, even though the only reason the payments appear unpaid is PayPals failure to reconcile reversed payments after cancelled chargebacks. PayPal support representatives repeatedly direct me to contact my bank or PayPal collections and refuse to escalate the issue to the Pay in 4 Back Office, Loan Servicing, or Adjustments team that can correct the loan ledger.

This is not a refusal to pay and not a valid delinquency. I still owe the balance to the XXXX XXXX that funded the Pay in 4 loan, not to PayPal twice. PayPal is demanding payment again for an obligation that was already paid and only temporarily reversed during disputes that were cancelled.

I am requesting that PayPal be required to : - Correct the Pay in 4 loan ledger by reconciling the reversed installment payments- Remove the delinquent and past-due status - Cease collection activity related to this error - Ensure no negative credit reporting occurs as a result of PayPals failure to properly service the loan I have attached documentation from XXXX Card confirming dispute closure, PayPal notices acknowledging the disputes, and PayPals own Pay in 4 account history showing the payment reversals and incorrect delinquency.

Company response to consumer: Closed with monetary relief