Consumer complaint received 2026-04-11 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Managing, opening, or closing your mobile wallet account — 
Company: Paypal Holdings, Inc
State: MI

Complaint narrative:
I opened a new PayPal account which was immediately and permanently deactivated for unspecified risk concerns with no explanation, no appeal process, and no opportunity to verify my identity. PayPal stated they may retain my personal data for up to 10 years due to regulatory requirements. However, I was simultaneously prevented from securing or correcting that data. I could not change my email or add security protections due to the accounts deactivated status. When I raised concerns about identity accuracy and data security, support acknowledged the seriousness and advised escalation to a specialist. When I requested connection to a human agent, I was informed that all agents were offline and unavailable. No escalation, case number, or formal report was created. I was then instructed to restart the process myself through general Contact Us channels, despite the account being restricted and non-functional. This creates a situation where personal data may be retained but can not be secured, corrected, or escalated in a timely manner. I am requesting : 1. The reason for deactivation 2. What data is retained and why 3. Ability to correct or secure my data 4. Formal escalation and assignment of a case number Master Complaint : * * Subject : * * Formal Complaint Account Deactivation, Data Retention, Security Control Failures, and Escalation Breakdown * * Complainant : * * XXXX XXXX * * Company : * * PayPal , Inc . * * Date : * * XX/XX/year> -- - # # * * Summary of Complaint * * I am filing a formal complaint regarding the handling of a newly created PayPal account that was immediately and permanently deactivated for unspecified risk concerns, without clear explanation, appeal process, or adequate support for resolving identity, privacy, and security concerns. This complaint incorporates a full interaction with PayPals automated support system, which failed to provide meaningful resolution, escalation, or protection of my personal data. The responses demonstrate systemic issues in transparency, security controls, and support processes. -- - # # * * Detailed Issues * * # # # * * 1. Account Deactivation Without Transparency * * Shortly after opening the account, it was permanently deactivated due to unspecified risk concerns. * No specific reason was provided * No appeal or review process was offered * No verification opportunity was given -- - # # # * * 2. Inability to Verify or Correct Identity Information * * I raised concerns that the account may contain incorrect or mismatched identity information. However : * No identity verification process was offered * No method to correct or dispute associated data was provided * No confirmation of what identity data is held was given -- - # # # * * 3. Data Retention Without Clear Legal Explanation * * PayPal support stated that some data may be retained for up to 10 years due to legal and regulatory requirements. * No specific laws or citations were provided upon request * No explanation of what exact data is retained was given * No mechanism to challenge or restrict processing was offered -- - # # # * * 4. Inability to Secure Retained Account Data * * Despite PayPal stating that account data will be retained : * I was unable to change the account email address * I was unable to add or modify security controls ( e.g., security questions ) * I was unable to secure or correct the account This creates a serious concern that personal data may remain stored while the user is unable to protect or manage it. -- - # # # * * 5. Privacy Opt-Out and Data Control Limitations * * When requesting privacy-related actions : * I was directed only to self-service settings * No human-assisted privacy resolution was provided * No alternative process was offered for deactivated accounts -- - # # # * * 6. Escalation and Support Process Failure * * I raised concerns regarding identity accuracy, data security, and potential exposure. Support acknowledged the seriousness of these concerns but : * Did not create a case number * Did not initiate escalation * Did not log a formal incident Instead, I was instructed to contact support separately to initiate these processes. -- - # # # * * 7. Contradictory Support Guidance * * Support stated that : * Conversations are logged and recorded However : * No visible escalation or action occurred * Responsibility for escalation was placed entirely on the user -- - # # # * * 8. Lack of Functional Resolution Path * * I was directed to : * Contact Us * Account settings However : * The account was deactivated and could not be modified * These paths did not provide a viable resolution -- - # # # * * 9. Instruction to Self-Escalate Without System Support * * During the interaction, I was provided general guidance to : * Navigate to the PayPal website * Locate Contact Us or Help & Contact * Choose a contact method ( chat, phone, or resolution center ) * Re-explain the issue and request escalation and a case number However, no escalation was initiated during the interaction itself, and no confirmation was provided that the issue had been formally logged. -- - # # # * * 10. Escalation Failure Due to Unavailable Support * * Support advised that my concerns could be escalated to a specialist who could formally log the issue and provide a case number. However, when I requested to be connected to a human agent, I was informed that all agents were offline and unavailable. As a result : * No escalation was initiated * No case number was provided * No formal report was created I was instead instructed to restart the process independently through general Contact Us channels. This created a situation where a serious concern was acknowledged but could not be acted upon in real time, further delaying resolution and leaving the issue unaddressed. -- - # # * * Impact * * This situation has resulted in : * Inability to use or resolve the account * Concern over accuracy and handling of personal data * Concern over security of retained information * Lack of confidence in account safety and identity protection * Significant time spent attempting to obtain basic support and answers -- - # # * * Requested Resolution * * I respectfully request : 1. A clear explanation of the reason for account deactivation 2. Disclosure of what personal data is currently retained 3. The legal basis for retention and duration 4. The ability to : * Correct inaccurate personal data * Secure the account ( where applicable ) * Restrict or minimize data processing where legally permissible 5. Confirmation that my concerns have been formally logged and escalated 6. Assignment of a case number and human point of contact -- - # # * * Supporting Evidence * * * Full chat transcript with PayPal automated support ( attached or available upon request ) * Timeline of interaction and responses -- - # # * * Closing Statement * * This complaint is submitted in good faith to resolve a matter involving account handling, data privacy, and security concerns. The interaction demonstrates a breakdown in support escalation, lack of actionable guidance, and an inability to secure retained personal data. I am seeking a clear, documented response and a path toward resolution. -- - * * Sincerely, * * XXXX XXXX

Company response to consumer: Closed with explanation