Consumer complaint received 2024-10-09 00:00:00
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: Paypal Holdings, Inc
State: IL

Complaint narrative:
This complaint is being filed against PAYPAL INC for multiple attempts to collect a NON-EXISTING DEBT as well as their HARRASSING tactics in doing so. They even sent the case to a debt collector despite receiving proofs of NO DEBT. While the complained incidents happened in XX/XX/XXXX to XX/XX/XXXX, Paypal continued to restrict use of my Paypal account despite a non-existent debt, in effect, continuing to aggrieve me in BAD FAITH. 

I have a Paypal account that I use to have some of my online transactions go through Paypal to supposedly limit the exposure of my third party credit card information. However, I do NOT have a Paypal credit card. Instead, I linked some of my credit card accounts from other credit card companies to my Paypal account. As such, when I conduct an online transaction via Paypal, I am prompted to choose one of my linked credit cards and Paypal takes the funds out of that third party credit card. In case of merchant credits or refunds, Paypal places the funds back to my third party credit card. 

This case involves XXXX online transactions I made to the same merchant on XX/XX/XXXX for {$34.00} and {$35.00}. I paid via Paypal using my XXXX XXXX ( XXXX ) credit card. The order was CANCELLED by the merchant without issuing a refund. I consequently did NOT receive any of the purchased items. I filed a DISPUTE with XXXX to which I received a provisional credit of {$34.00} and {$35.00}. However, during the dispute, the merchant issued a refund for {$34.00} and {$35.00}. To remove the duplicate credits, XXXX did a reversal of the provisional credit for {$34.00} and {$35.00}. My billing statements therefore appeared with 8 transactions -- 2 sets of credits for {$34.00} and {$35.00} and 2 sets of debits for {$34.00} and {$35.00}. My XXXX statements for those periods were fully paid. I therefore do NOT owe anything to PayPal. 

XXXX provided documents of every Transaction ID received from and sent to Paypal relative to the subject transactions. I provided Paypal with these Transactions IDs, along with screenshots of my XXXX credit card statements. However, despite knowing that XXXX already re-charged my credit card for the duplicate credit, Paypal made several attempts to COLLECT DIRECTLY FROM ME -- did not care that I already paid XXXX and despite the fact that I do not have a credit card with Paypal. Paypal did this harrassing attempts to collect during XXXX and XXXX XXXX season -- - and I mean multiple collection emails PER DAY while I was supposedly enjoying the holiday with my family. Paypal kept me on the phone for several hours during the holiday season, repeatedly asked me to show proofs which I did each time, yet Paypal did NOT clear my Paypal account. Not satisfied with what they did so far, Paypal sent the case to a debt collector XXXX XXXX. I do not wish to file a complaint against XXXX XXXX as they immediately ceased from further activity upon knowing what happened. In addition, XXXX XXXX CONFIRMED to me on a phone conversation that Paypal RECEIVED THE CREDIT from XXXX but Paypal allegedly tagged it as FRAUD. 

In view of the foregoing, despite Paypal knowing the receipt of credit from XXXX, Paypal knowingly, willfully, and in bad faith, tagged and/or continued to tag the credit as FRAUD, refused to acknowledge it, and opted to collect directly from me even though I do not owe Paypal anything XXXX Paypal engaged in ILLEGAL COLLECTION OF A NON-EXISTING DEBT. Paypal engaged in HARRASSING tactics to collect a non-existing debt. Paypal fraudulently tagged a valid credit from XXXX as Fraud, pretended as if they did not receive the credit, and made the multiple harrassing attempts to collect a non-existing debt directly from me out of that pretension. 

In my attempt to use my Paypal account this XX/XX/XXXX, on the log in page, Paypal required me to sign an agreement that I am authorizing them to collect a debt. I did not proceed to make a transaction as I have NO debt with PayPal but they refuse to acknowledge it. 

Upon investigation and confirmation of my allegations, I pray that CFPB takes Legal Action against Paypal so the company may be provided by the court with reasonable penalties including exemplary damages due to their illegal and harrassing actions. I have been informed that I am not the only person who experienced this from Paypal. While I am filing this complaint, other victims may not know what to do or may not have the same courage that I have. I also pray that Paypal be obliged to clear and not reflect any outstanding balance on my Paypal account. I also pray that I be treated by Paypal the same way a regular Paypal customer in good standing is treated. 

@ CFPB -- I have documents to prove the allegations above if deemed necessary.

Company response to consumer: Closed with explanation