Consumer complaint received 2025-04-15 00:00:00
Product: Debt collection — I do not know
Issue: Took or threatened to take negative or legal action — Threatened to sue you for very old debt
Company: Paypal Holdings, Inc
State: PA

Complaint narrative:
I feel so stupid because I entered into a FRAUDULENT scam on the internet ( XXXX ) a few weeks ago ( XXXX XXXX XXXX XXXX XXXX 

This poster XXXX XXXX XXXX XXXX XXXX XXXX posted on XXXX that she won XXXX XXXX and would gladly give {$10000.00} to anyone who asked her. Because the transaction was going through PayPal, I didn't see the harm, so I reached out to her. If XXXX really were pulling a scam, I thought PayPal would help me out, so I didn't see the red flags. 

At first XXXX seemed legitimate, asking me the right questions ... what would I do with the money, etc. I explained that I was retired and had a lot of repairs to do to my home. She then said she needed {$100.00} as a processing fee to her manager XXXX XXXX, who was processing the requests. She suggested that we make the transaction ( as a friend and family type ) through PayPal. The payment went through. Then she said she needed another {$120.00}, something to do about my bank account, so I sent that amount ( total outlay at this point was {$220.00} ). When she asked for a THIRD payment and no sign that I would be getting the {$10000.00}, I told her I wanted my money ( {$220.00} ) returned .. that I was no longer interested in getting the {$10000.00}. SHE REFUSED! She said I still needed to send her a THIRD payment. I was hysterical with her and she just laughed in my face, refusing to refund my money. 

I then went to PayPal because I thought PayPal would refund my money, but they refused, saying that they don't get involved in friends and family transactions and suggested I go to my bank. 

I then contacted my bank and put a stop payment on the two amounts and was immediately refunded the {$220.00}. I thought everything was fine! I recovered my money and would close out this horrible learning experience. 

Well, I then got an email from PayPal saying that I have a negative balance of {$100.00} on my account and needed to make restitution to XXXX in that amount. I guess the {$120.00} went through but PayPal didn't mention it. Anyway, I have been in a nonstop fight with PayPal, explaining that the {$100.00} was part of a scam. I suggested to PayPal that they should put a stop payment on that amount with the original scammer XXXX XXXX XXXX XXXX but they won't do that. They are asking me to reimburse them instead. PayPal has since threatened to place the {$100.00} debt with a collection agency in the next 60 days or so. 

Because the transaction with XXXX XXXX went through PayPal, and PayPal withdrew the amounts from my bank account, I could easily put a stop payment on them. But I couldn't go back to XXXX XXXX XXXX XXXX XXXX XXXX XXXX  because I don't have his bank info but PayPal does. If PayPaul would put a stop payment against XXXX XXXX, they would get their {$100.00} back. I shouldn't be punished twice. 

I feel so foolish for falling for this scam and am really embarrassed. And I am disgusted that PayPal is threatening me with a collection service. 

Do you think you can help me? 


P.S. I have since learned that there are about 30,000 complaints lodged against PayPal with the XXXX over the last three years! Looks like I am not the only one who has had problems with them.

Company response to consumer: Closed with non-monetary relief