Consumer complaint received 2025-07-26 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: TX

Complaint narrative:
CFPB Complaint : XXXX XXXX XXXX Delayed Refund & Violations of Purchase Protection and Regulation E.

XX/XX/XXXXXXXX  I paid {$100.00} to merchant via XXXX  ( External Payment ID XXXX ) for [ goods/services ]. The transaction was eligible for XXXX Purchase Protection. 

XX/XX/XXXX : Upon not receiving the goods/services as promised, I filed a Purchase Protection dispute with XXXX  ( Dispute ID : XXXX ). 

XXXX  acknowledged the dispute but did not resolve it. More than 10 business days passed without any refund or final decision. My repeated follow-ups ( through phone, email, or in-app support ) elicited only vague responses that the case was under review or re-escalated, with no concrete timeline or supervisor involvement. XXXX  refused to provide a provisional credit, meaningful status update, or access to a dispute specialist, contrary to its own policy assurances. 

Legal and Policy Violations XXXX conduct violates both its Purchase Protection terms and federal law. XXXX dispute process is effectively a request for error resolution under the Electronic Fund Transfer Act ( EFTA ) and Regulation E ( 12 CFR 1005 ). As the CFPBs own guidance confirms, any person-to-person ( P2P ) payment that meets the definition of an electronic fund transfer is covered by EFTA and Regulation E . Thus, this XXXX payment qualifies, and XXXX  is legally required to follow Reg Es error-resolution procedures. 

Regulation E ( 12 CFR 1005.11 ) mandates prompt investigation and resolution of consumer errors. Specifically, a financial institution shall investigate promptly and determine whether an error occurred within 10 business days of receiving notice of a dispute, and must notify the consumer of the results within 3 business days thereafter. If an error is confirmed, the institution must correct it ( issue a refund ) within one business day. XXXX  has clearly flouted this requirement : more than ten business days elapsed with no determination, no refund, and no clear communication of results. 

XXXX  delay also breaches its own Purchase Protection promises and constitutes an unfair or deceptive practice. In CFPB enforcement actions, PayPal ( XXXX parent company ) was found to have similarly mismanaged disputes. For example, in CFPB v. PayPal ( XXXX XXXX XXXXXXXX ), XXXX  XXXX alleged that PayPal mishandled billing disputes in violation of the Consumer Financial Protection Acts prohibitions on unfair or deceptive acts. That consent order required PayPal to provide {$15.00} XXXX in consumer redress and pay a {$10.00} XXXX civil penalty. XXXX behavior in this case stonewalling a legitimate dispute, ignoring the 10-day deadline, and refusing to escalate echoes the misconduct previously sanctioned by the CFPB. It undermines the very protections Regulation E was designed to provide. Under 12 CFR 1005.11 and the CFPA, XXXX failure to resolve this dispute timely is unlawful and warrants enforcement. 

Request for CFPB Action Pursuant to the Consumer Financial Protection Act, I request that the CFPB : Investigate XXXX practices. Examine XXXX handling of this and similar disputes for compliance with Regulation E ( 12 CFR 1005.11 ) and the CFPA. XXXX ongoing failure to apply the 10-business-day error-resolution rule is a regulatory violation. 
Enforce compliance and accountability. Use your enforcement authority to compel XXXX  to comply with federal law and its own Purchase Protection terms. XXXX  must be held accountable for engaging in unfair, deceptive, or abusive acts by misrepresenting its dispute process and ignoring statutory deadlines. 

Since that date, I have called and/or chatted with XXXX  support every single day, requesting updates and resolution. Despite my ongoing efforts and daily engagement, XXXX  has failed to : Provide a written status update or decision Issue a refund Allow me to speak to a supervisor or dispute specialist Meet the legally required resolution timeframe XXXX  has exceeded the 10-business-day requirement under federal regulation ( Regulation E 12 CFR 1005.11 ) for investigating and responding to electronic fund transfer XXXX Current Excuse : XXXX  has responded that the case is under review and has been re-escalated, but still refuses to provide : A resolution or timeline Any confirmation that a refund is approved or denied Access to a supervisor or internal specialist team Escalation options beyond scripted chat replies This is stonewalling, not customer service. The company has created a closed-loop system with no accountability, which harms consumers and violates federal law. 



Requested Relief : I am asking the CFPB to : Investigate XXXX  pattern of unresolved disputes Enforce compliance with Regulation E Require XXXX  to issue my full {$100.00} refund immediately Impose penalties or other corrective action to prevent future abuse Hold XXXX  accountable for deceptive practices and regulatory violations Supporting Documents Available : Screenshots of XXXX  support chats Payment and dispute confirmation Email/chat logs showing repeated follow-ups Summary : I followed XXXX process exactly as directed. I acted in good faith. XXXX  did not. I ask the CFPB to intervene and stop this pattern of delay, deception, and denial of consumer rights. 

Thank you.

Company response to consumer: Closed with explanation