Consumer complaint received 2025-12-28 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: CA

Complaint narrative:
b'PayPal improperly handled a buyer dispute by ignoring indisputable delivery and refund evidence, allowing the buyer to repeatedly change dispute reasons after being disproven, and ultimately permitting the buyer to retain both the merchandise and refunded funds. This constitutes a failure of PayPals dispute resolution obligations, a breakdown of Seller Protection, and facilitation of unjust enrichment through abuse of PayPals claims system.\n\n\n\nDetailed Timeline and Facts\n\nIn XXXX XXXX, a buyer, XXXX XXXX, purchased a pair of glasses from me for $XXXX.\n\nThe buyer later requested a return due to fit issues. We mutually agreedin writingto a $XXXX  restocking fee plus return shipping, consistent with my return policy.\n\nI shipped the item using USPS Signature Confirmation to the exact address provided by the buyer.\n\nTracking Number: XXXX XXXX XXXX XXXX XXXX XXXX\n\nUSPS confirms:\n\t\tDelivered: XXXX XXXX XXXX at XXXX XXXXn\t\tLocation: XXXX XXXX XXXXXXXXSigned for by: XXXX XXXX\n\nImmediately after delivery, the buyer confirmed receipt in writing, stating:\n\nI received the glasses. Thank you so much.\n\nOn XXXX XXXX XXXX, the buyer requested a refund. I issued a refund of $XXXX, reflecting the agreed deductions. The buyer acknowledged the refund in writing (Thank you ).\n\n\n\nBad-Faith Dispute Escalation and Changing Claim Reasons\n\nDespite confirming delivery and refund receipt, on XXXX XXXX XXXX, the buyer filed an Item Not Received dispute with PayPal.\n\nI promptly submitted overwhelming evidence, including:\n\t\tUSPS signature delivery confirmation\n\t\tCarrier tracking to buyers address\n\t\tBuyers written acknowledgment of receipt\n\t\tPayPal refund confirmation\n\t\tComplete message history and return agreement\n\nAfter this evidence conclusively disproved the Item Not Received claim, the buyer changed the dispute reason from Item Not Received to Not Refunded.\n\nThis change occurred after:\n\t\tThe buyer confirmed receipt of the item\n\t\tUSPS confirmed signature delivery\n\t\tThe refund had already been issued and acknowledged\n\nThis behavior reflects a clear abuse of the dispute process, attempting to salvage a claim by shifting allegations after the original claim was invalidated.\n\n\n\nPayPals Improper Conduct\n\nDespite the clear evidence and documented timeline, PayPal:\n\t1.\tAllowed the buyer to change dispute reasons mid-case instead of closing the invalid claim\n\t2.\tFailed to properly evaluate evidence already submitted\n\t3.\tIgnored written buyer admissions confirming both delivery and refund\n\t4.\tPermitted double recovery, allowing the buyer to retain the merchandise and refunded funds\n\t5.\tFailed to apply Seller Protection standards consistently\n\nPayPals actions effectively rewarded bad-faith conduct and penalized a seller who complied fully with PayPals requirements.\n\n\n\nHarm and Financial Impact\n\t\tDirect financial loss of $XXXX\n\t\tLoss of merchandise valued at $XXXX\n\t\tSignificant time spent responding to shifting allegations\n\t\tLoss of confidence in PayPals dispute resolution integrity\n\nThis outcome represents unjust enrichment of the buyer facilitated by PayPals failure to enforce basic evidentiary standards.\n\n\n\nRequested Resolution\n\nI respectfully request that PayPal be required to:\n\t1.\tReverse the improper dispute decision\n\t2.\tRestore the wrongfully withheld funds\n\t3.\tAcknowledge that the buyers claims were invalid under both dispute categories\n\t4.\tReview and correct internal procedures that allow buyers to change dispute reasons after evidence disproves their original claim\n\nAll supporting documentation has already been provided to PayPal and is available for CFPB review.'

Company response to consumer: Closed with explanation