Consumer complaint received 2026-01-30 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem — 
Company: Paypal Holdings, Inc
State: GA

Complaint narrative:
Company name PayPal , Inc . 

Product / service Digital wallet / payment services Fraud and unauthorized transaction handling What happened? 

I am filing this complaint due to PayPals failure to properly investigate and resolve a fraudulent, unauthorized transaction, and its continued attempts to collect a disputed negative balance stemming from that fraud. 

On or about XX/XX/year>, a transaction in the amount of {$1900.00} USD was processed from our PayPal account ( XXXX ) to an unknown recipient : XXXX ( Transaction ID : XXXX ). 

This transaction was unauthorized and fraudulent. We have no knowledge of the recipient, no prior relationship, and received no goods or services. Upon discovery, we notified PayPal and our bank at the same time and cooperated fully with all fraud reporting requirements. 

Despite this, PayPal determinedwithout transparencythat no unauthorized use occurred, denied our appeal ( XXXXXXXX XXXX XXXXXXXX XXXX XXXX and has since continued to demand payment of a negative balance totaling {$1600.00}, even though the underlying transaction remains actively disputed. 

PayPal has refused to provide meaningful evidence supporting its conclusion and continues collection efforts on a balance that is directly tied to a reported scam. This conduct is unreasonable, harmful, and inconsistent with fair consumer financial practices. 

Whats the main issue youre having? 

Unauthorized transaction / fraud mishandled Improper collection of disputed debt Failure to provide investigation records Account restrictions tied to fraudulent activity What did you do to try to fix the problem? 

Reported the transaction immediately as fraud Filed an unauthorized activity claim with PayPal Appealed PayPals decision Notified our bank simultaneously Requested documentation supporting PayPals findings What response did you get from the company? 

PayPal denied the claim and appeal, stated the transaction was consistent with account history, and continues to demand repayment of the negative balance while refusing to make the account whole or suspend collection activity. 

What would you like the company to do to fix the problem? 

I am requesting that PayPal : Reverse the fraudulent transaction and fully restore our account balance Immediately cease all collection efforts related to this disputed balance Provide full documentation, including IP logs, device data, and internal review records used to deny the claim Remove any negative account flags, restrictions, or internal reporting related to this incident Upon discovery, our bank was notified immediately and initiated cancellation of the transaction. This PayPal account has a very limited and consistent usage history, used almost exclusively to remit XXXX membership dues twice annually. We have never conducted business with, communicated with, or authorized any payment to the recipient tied to this transaction. 

The recipient email address is unknown to us and has no legitimate business relationship with our organization We are prepared to pursue legal remedies if this matter is not resolved promptly This complaint is being filed concurrently with internal bank fraud escalation Name : XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX

Company response to consumer: Closed with monetary relief