Consumer complaint received 2024-10-06 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: NC

Complaint narrative:
PayPal , Inc . 
Attn : Dispute Resolution Department XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX Subject : Formal Complaint Regarding Unresolved Dispute and Breach of Purchase Protection Policy Dear PayPal Dispute Resolution Team, I am writing to express my deep frustration and concern regarding the handling of my two disputes related to payments made to a merchant, XXXX  XXXX, through PayPals platform. These payments were intended for tax and legal services which were never rendered, and I believe PayPal has acted in violation of its own Purchase Protection Policy, as well as other key obligations. I am seeking immediate resolution of my outstanding dispute and a full refund of the remaining payment. 

Below are the details of the payments in question : 1. Payment of {$2200.00} on XX/XX/year> to XXXX  XXXX for services, which has since been refunded by PayPal. 
2. Payment of {$3300.00} on XX/XX/year> to XXXX  XXXX for the final payment of services, which has not been refunded. 
Both payments were made under the understanding that PayPals Purchase Protection Policy for Goods and Services would apply, offering security in the event of any issues with the merchant. I deliberately chose this option to ensure my payments would be protected, especially since the services I paid for were never rendered. 

Upon realizing that XXXX XXXX was unresponsive and had not provided the services I paid for, I promptly filed two disputes on XX/XX/year>. I made multiple calls to PayPals customer service, but I consistently received vague updates and was told I had to wait. 

On XX/XX/year>, I was refunded the first payment of {$2200.00} due to the sellers lack of response, which violated PayPals 10-day policy for disputes. According to this policy, if a seller does not respond within 10 days, PayPal is supposed to issue a full refund within 48 hours thereafter in which PAYPAL INC. chose not to with no explanation. 
Despite the refund for the first transaction, I was informed that my second dispute was still under review, and no additional information was provided. This is particularly concerning since both disputes are linked to the same merchant and unresolved issue. 

I am incredibly frustrated by PayPals handling of this situation for the following reasons : 1. Unfair and Deceptive Acts and Practices : PayPals refusal to refund the second payment of {$3300.00} after refunding the first payment for the exact same dispute is inconsistent, unfair, and deceptive. This discrepancy in treatment suggests an arbitrary approach to dispute resolution. 

2. Breach of Contract : I relied on PayPals Purchase Protection Policy when I made the payments for Goods and Services. By declining my valid dispute for the second payment, PayPal has breached its contractual obligations to protect me as a consumer. 

3. Negligence and Failure to Act in Good Faith : PayPals inability to resolve both disputes consistently and in a timely manner shows negligence and a failure to act in good faith. Both payments were made to the same merchant for the same service, and both were covered under the same policy. PayPals failure to promptly resolve this matter suggests a disregard for my rights as a customer. 

4. Unethical and Deceptive Conflict Resolution Practices : PayPals dispute resolution process has been marred by a lack of transparency and inconsistent communication. After multiple calls, I was consistently told to wait, with no clear explanation as to why one payment was refunded and the other remains unresolved. This reflects unethical practices that are contrary to PayPals commitment to protecting its customers. 

5. Internal Policy Violations : PayPals own refund policy states that disputes must be opened within 180 days, which I did. I initiated both disputes in a timely manner, yet the handling of my second dispute remains unresolved, indicating internal policy violations. 

6. Failure to Meet Regulatory Timeframes and Lack of Documentation : PayPal has failed to meet reasonable regulatory timeframes in addressing my dispute. Additionally, I have received no clear documentation explaining why my second dispute has been treated differently from the first, further undermining the transparency of the process. 

7. Inadequate Training of Staff : PayPals customer service staff demonstrated a clear lack of training when dealing with my dispute. They were unable to provide meaningful updates or clarify why my second payment was not refunded along with the first. 

8. In light of these serious violationsunfair practices, breach of contract, lack of transparency, and failure to meet regulatory standardsI demand the immediate refund of the remaining {$3300.00} that I am owed under PayPals Purchase Protection Policy. The merchant misrepresented themselves and failed to deliver the services for which I paid, leaving no justification for PayPals refusal to issue the refund. 

9. Additionally, I request that PayPal provide a formal explanation for the disparity in how my two disputes were handled and outline the corrective actions it plans to take to ensure this issue does not occur in the future. 

10. I trust that PayPal will take my complaint seriously and act promptly to resolve this matter. If I do not receive a satisfactory response within [ set your preferred number of days, e.g., 14 days ], I will have no choice but to escalate this matter and take legal action against PAYPAL INC. 

I expect a swift and fair resolution to this matter. Thank you for your attention to this issue, and I look forward to your prompt response.

Company response to consumer: Closed with explanation