Consumer complaint received 2025-12-22 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: Paypal Holdings, Inc
State: AR

Complaint narrative:
URGENT UPDATE - POSSIBLE RETALIATION : This involves the case I just filed " XXXX '' I am updating this complaint because PayPal has now permanently deactivated my entire account as of today, XX/XX/2024, and I believe this is direct retaliation for filing this CFPB complaint. 
Timeline of Events : XX/XX/2024 : CFPB sent my complaint to PayPal ( according to my CFPB account ) XX/XX/2024 ( today ) : PayPal permanently deactivated my account without any prior warning I received absolutely no phone call, email warning, or communication from PayPal before they shut down my account. They have my phone number and email address on file but made no attempt to contact me. The ONLY communication I've received are automated emails informing me the account is closed - emails I can not respond to. 
Why This Appears to Be Retaliation : The timing is not coincidental. I have used PayPal for years without my account ever being threatened. Within 2 days of PayPal receiving this federal complaint about their dispute handling practices, they suddenly " permanently '' deactivated my account with no warning or explanation. This appears designed to : Punish me for seeking regulatory help Cut off my access to my own funds Intimidate me into dropping this complaint Prevent me from filing future disputes My Current Situation : I have money in my PayPal account that I can not access I had an ACTIVE dispute pending with XXXX for a returned item when they shut me down I am expecting refunds from other merchants ( like XXXX ) that will now have nowhere to go PayPal is my primary payment method - I am now unable to access my own money to buy food and necessities I am in financial distress because PayPal is holding my funds hostage What I'm Asking CFPB to Do : Investigate whether this account closure was retaliatory for filing a federal complaint Order PayPal to immediately release my funds so I can survive- I can not wait 60+ days while they " investigate '' Require PayPal to provide documentation justifying why they closed my account the same day they received this complaint Determine if PayPal violated consumer protection laws by closing my account in retaliation for exercising my rights I did exactly what consumers are supposed to do : documented problems with photos, followed PayPal 's procedures, and when that failed, filed a regulatory complaint. PayPal 's response was to permanently shut down my account without warning and trap my money. This is not protecting against fraud - this is retaliation and financial abuse.

I need immediate help. If PayPal is allowed to keep my money while " investigating '' for months, I will run out of food and be unable to pay for basic necessities. This is an emergency. This conduct appears to constitute : retaliation for filing a federal complaint, intentional infliction of emotional distress, conversion of my funds, breach of contract, breach of good faith and fair dealing, unfair and deceptive trade practices, tortious interference with my ability to receive merchant refunds, unjust enrichment, and potential violations of the Electronic Fund Transfer Act and state consumer protection laws.

Company response to consumer: Closed with explanation