Consumer complaint received 2025-11-09 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: TN

Complaint narrative:
My XXXX account was hacked and my saved passwords were used to make 4 fraudulent transaction. The person had ordered a {$7000.00} computer on y XXXX account which I was able to cancel the order. they had made a {$250.00} transaction with one of my credit cards which I was able to dispute and get credited. They accessed my XXXX account and ordered two XXXX XXXX one from two individual sellers and charged to my PayPal Account. I contacted XXXX and reported the fraud Ref # XXXX. I contacted my back and reported the fraud and put a stop payment on transaction. I was able to contact one seller and cancel the order. The other seller claimed that the item had already been sent. I recommended that he contact shipper and get the item returned and they did not and the item was delivered to an address in XXXX Oregon that the hacker had added to both my XXXX account and XXXX account. I removed both on XX/XX/XXXX once a realized what was going on. The hacker was actually on my XXXX account the same time as I was. As they tried to hide the transactions after I had seen them. I found them again under hidden transaction tab. I realized PayPal had paid the seller and was trying to collect payment from me. I filed a PayPal claim through their resolution center. The claim was denied on XX/XX/XXXX. I contacted PayPal on the phone and the representative reopened the claim under an " Item not received '' I explained that this was fraud and he stated yes but you did not receive the item. So this claim was also denied. I sent the below email to PayPal. They opened the claim on XX/XX/XXXX. They again denied my claim today XX/XX/year>. 

XXXX XXXX XXXX XXXX XXXX  Dear PayPal Appeals/Collections Department , I am writing to formally dispute and appeal the charge of approximately {$1700.00} that has been wrongfully assigned to my PayPal account . This transaction was unauthorized and involved an XXXX purchase of an XXXX that was shipped to an address in Oregon, even though I reside in Tennessee and did not authorize or receive the item. 

Here are the relevant details : Platform : XXXX ( paid through PayPal ) Item : XXXX Amount : Approximately {$1700.00} Ship-to Address : XXXX XXXX, XXXX XXXX My Residence : XXXX XXXX, TN XXXX XXXX of Transaction : XX/XX/year> As soon as I became aware of the fraudulent charges, I immediately : 1. Notified XXXX that the purchase was unauthorized and fraudulent. 
2. Confirmed with XXXX that this order was part of a fraudulent purchase dispute already in progress from the same time period. 
3. Reported the unauthorized activity to my bank immediately, following Regulation E requirements.

4. Provided full cooperation and documentation to both PayPal and XXXX. 

Despite this, I am now receiving collection threats from PayPal demanding payment for {$1700.00} and warnings about reporting this to the credit bureaus. I want to be very clear : I did not authorize this transaction. 
The product was not received by me. 
The item was shipped to another state, and the signature is not mine. 

This is a clear case of fraud and identity theft. I have filed ( or am filing ) both a local police report and an FTC Identity Theft Report, and I will provide those case numbers as soon as they are available. 

Under the Electronic Fund Transfer Act ( Regulation E ) and PayPals User Agreement, consumers are not liable for unauthorized transactions when reported promptly. Additionally, under the Fair Credit Reporting Act ( FCRA ) and Fair Debt Collection Practices Act ( FDCPA ), PayPal may not pursue or report a debt that is disputed as fraudulent.

Accordingly, I am requesting that PayPal : 1. Cease all collection activity immediately on this account.

2. Reopen and fully review this transaction as fraud, taking into account that it was shipped to a different state and signed for by an unknown party.

3. Provide written confirmation that my account is not being held responsible for this unauthorized transaction.

If PayPal continues to pursue this invalid debt, I will be filing formal complaints with the Consumer Financial Protection Bureau ( CFPB ) and the Better XXXX XXXX XXXX XXXX XXXX to escalate the matter. 

Please confirm receipt of this message and that this case is under review. 

Thank you for your attention to this matter. 

Sincerely, XXXX XXXX XXXX Paypal email address : XXXX Phone # : XXXX XXXX TN XXXX Case # : My XXXX ref # is XXXX. PayPal case : XXXX Dear PayPal Appeals/Collections Department, A police report has been filed with XXXX Tennessee XXXX Officer Deputy XXXX  badge # XXXX XXXX XXXX XXXX XXXX XXXX  Police Report XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

I have filed an FBI IC # complaint as well. Submission ID # XXXX I would like to request that you open my PayPal case # : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  that was denied. Please notice that the seller shipped the item after I informed them of the fraud according to the time stamps on the attached documents. My next call is to a lawyer to begin filing a lawsuit against PayPal. I would like to resolve this immediately.

Company response to consumer: Closed with monetary relief