Consumer complaint received 2025-06-15 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Money was not available when promised — 
Company: Paypal Holdings, Inc
State: NY

Complaint narrative:
Hello! I hope this message finds you well. I am writing to formally request a review and resolution regarding the permanent limitation placed on my PayPal account and the wrongful withdrawal of funds from my account by PayPal. My account was previously limited, and at that time, I submitted all the requested documents and information. Following that, my account was restored. However, in XX/XX/XXXX, the account was once again permanently limited without any explanation or notification outlining the specific reason. On XX/XX/XXXX, I received an e-mail from PayPal that the funds in my account were eligible for withdrawal. However, due to personal reasons, I was unable to withdraw the funds immediately and was able to log onto my Paypal account on XX/XX/XXXX to withdraw the funds. To my surprise, my account had been limited AGAIN. I received an e-mail with the title 'You can no longer use PayPal XXXX. The e-mail further mentioned that my funds will be held for another 180 days. On XX/XX/XXXX I called PayPal Customer Support, hoping to resolve the issue directly, but unfortunately, the representative failed to provide any meaningful assistance. I was told to send an email instead, which felt redundant and unproductive, given I was already speaking with a live agent. The customer representative mentioned that the account can not be restored, but my funds will be available for withdrawal on XX/XX/XXXX. On XX/XX/XXXX, when I logged into my PayPal account to withdraw my funds, I was shocked to discover that the funds had been taken by PayPal. A note stated : " PayPal loss recovery ''. I want to clarify that I have not violated any terms of the PayPal User Agreement, nor have I caused any financial loss to PayPal or any other party. On the contrary, I have experienced significant inconvenience and stress as a result of this situation. The loss has been entirely mine. Immediately, I called Payapl customer support again. After waiting for some time, I was finally able to speak to a customer representative. I explained the entire situation to her, and in response, she simply read a statement from PayPal, which said something along the lines of : PayPal reserves the right to withdraw funds for loss recovery or violations of its user agreement ''. Again, I did no such thing. The e-mail clearly stated I will be able to withdraw my funds after 180 days. I did all the right things, and I was waiting patiently to transfer my funds to my bank account since XX/XX/XXXX. The way PayPal has handled this situation is both unacceptable and completely unfair. It is extremely distressing to realize that a company I trusted with my money could so easily withdraw my funds, funds that are rightfully mine.

I respectfully request that the CFPB assist me in restoring my account and recovering my funds from PayPal. This entire situation has caused me a lot of inconvenience and has consumed a considerable amount of my time. I have received zero assistance and help from PayPal, which has been very stressful. Thank you for your attention to this matter. I look forward to your prompt response and a fair resolution.

Company response to consumer: Closed with explanation