Consumer complaint received 2025-10-19 00:00:00
Product: Money transfer, virtual currency, or money service — International money transfer
Issue: Other transaction problem — 
Company: Paypal Holdings, Inc
State: CA

Complaint narrative:
SUMMARY OF COMPLAINT In XX/XX/XXXX, XXXXPayPal abruptly and permanently closed my account without prior warning, without specific justification, and has denied me access to my complete transaction history for nearly three years. Despite repeated attempts to contact XXXX since XX/XX/XXXX, they have : Refused to specify which policy I allegedly violated Denied me access to my transaction history ( hundreds of transactions from XXXX ) Blocked all customer service access ( phone and chat ) Left me unable to properly file my federal and state tax returns for XXXX and XXXX I am currently unable to file my XXXX tax return because I lack the detailed transaction records showing payees and payment purposes. My bank statements only show " XXXX '' as the merchant with amounts and datesnot the critical payee information needed to document legitimate expenses, deductions, and payments for tax purposes. 
This nearly three-year denial of access to my own financial records violates multiple federal consumer protection laws and regulations, as detailed below. 

DETAILED CHRONOLOGY OF EVENTS XXXX - XX/XX/XXXX : I maintained an active XXXX account in good standing, using the service for bill payments and money transfers to payees in XXXX, including payments to my fianc and legitimate business/personal expenses. I conducted hundreds of transactions during this period. 
XX/XX/XXXX : Without warning, XXXX disabled my account access. When attempting to log in, I receive only a message stating " let 's clear up an issue, '' but nothing happensthe system does not allow me to proceed or resolve any alleged issue. 
I immediately contacted XXXX requesting : Specific explanation of which policy was violated Access to my complete transaction history for tax preparation and financial records Restoration of account access or proper account closure procedures XXXX 's Response ( XX/XX/XXXX ) : Refused to specify which policy I allegedly violated Ignored my request for transaction history Blocked access to customer service phone support Blocked access to chat support Provided no meaningful avenue for resolution or appeal Spring XXXX - XXXX Tax Return Filing : When preparing my XXXX federal and state tax returns ( filed in XXXX ), I was forced to completely omit XXXX transactions from consideration because I had no access to the detailed records showing payees and purposes. This potentially compromised the accuracy and completeness of my tax filings. 
XX/XX/XXXX- XX/XX/XXXX ( Ongoing ) : I have repeatedly attempted to contact XXXX to obtain my transaction history. All attempts have been ignored or blocked. I continue to receive the same " let 's clear up an issue '' message with no actual resolution mechanism. 
XX/XX/XXXX ( Current Situation ) : I am now attempting to prepare my 2023 tax returns ( late filing ). My bank statements show XXXX transactions with dates and amounts, but critically lack payee informationwhich is essential for documenting : Legitimate business expenses and deductions Payments to specific individuals for tax reporting purposes Proper categorization of expenditures Compliance with IRS record-keeping requirements Without the detailed XXXX  transaction history showing who I paid and for what purpose, I can not properly complete my XXXX tax return. I am effectively trapped : I can not file accurate taxes without these records, and XXXX continues to deny me access to my own data after nearly three years. 

LEGAL VIOLATIONS XXXX 's actions violate multiple federal consumer financial protection laws and regulations : 1. ELECTRONIC FUND TRANSFER ACT ( EFTA ) VIOLATIONS 15 U.S.C. 1693 et seq. ; 12 CFR Part 1005 ( Regulation E ) The EFTA broadly covers " electronic fund transfers, '' and Regulation E specifically applies to " remittance transfers '' ( 12 CFR 1005.30 et seq. ), which describes XXXX 's core business. 
Specific violations : 12 CFR 1005.31 - Remittance transfer providers must provide receipt and disclosures for each transaction. XXXX has denied me access to any receipts or transaction records for nearly XXXX years. 
XXXX CFR XXXX ( b ) - Requires periodic statements showing transaction history. XXXX has completely denied me access to any statements or transaction records since XX/XX/XXXX. 
12 CFR 1005.13 - Error resolution procedures require access to transaction history to identify and dispute errors. Without access to my records, I can not exercise my error resolution rights.

15 U.S.C. 1693l - Waiver of rights prohibited. XXXX can not unilaterally deny my statutory rights to account information. 
15 U.S.C. 1693m - Civil liability for EFTA violations. XXXX 's nearly three-year denial of access creates substantial civil liability exposure. 

Note on statute of limitations : While EFTA has a one-year statute of limitations for individual violations ( 15 U.S.C. 1693m ( g ) ), the ongoing denial of access constitutes a continuing violation. Each day XXXX denies me access to my records could be considered a separate violation, particularly as I have made repeated requests and continue to need these records for current tax compliance. 
2. CONSUMER FINANCIAL DATA ACCESS RIGHTS 12 U.S.C. 5533 ( Dodd-Frank Section 1033 ) ; 12 CFR Part 1033 Section 1033 of the Dodd-Frank Act establishes the fundamental consumer right to access their own financial records. The new Personal Financial Data Rights Rule ( finalized October 2024, 12 CFR Part 1033 ) specifically requires : Access to at least 24 months of transaction data Data must be provided in electronic, usable format Institutions can not charge fees for consumers ' own data Data must be provided upon consumer request Although full implementation is phased through XXXX, the underlying statutory right under Section 1033 already exists and has existed since Dodd-Frank was enacted in XXXX. 
XXXX 's complete denial of access to my transaction history since XXXX XXXXnearly three yearsis a flagrant violation of both : The existing Section 1033 statutory right to access my own financial data The principles underlying the new Part 1033 regulations This is precisely the type of abuse the CFPB sought to prevent with the Personal Financial Data Rights Rule.

3. UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES ( UDAAP ) 12 U.S.C. 5536 XXXX 's conduct constitutes unfair, deceptive, and abusive practices under UDAAP : Unfair practices ( causes substantial injury that consumers can not reasonably avoid ) : Closing my account without warning prevented me from arranging alternative payment methods or preserving transaction records Denying transaction history for nearly three years has prevented tax compliance and financial record-keeping, causing substantial documented harm I have been unable to properly file XXXX and XXXX tax returns due to lack of payee information Blocking all customer service access prevents any reasonable resolution I can not avoid this injury as XXXX exclusively controls access to my own data Abusive practices ( takes unreasonable advantage of lack of understanding or inability to protect interests ) : Vague accusations without specific policy violations leaves me unable to understand or contest the account closure No meaningful dispute resolution process despite nearly three years of requests Complete denial of customer service access creates a Kafkaesque situation where I can not even communicate with the company Using account closure as leverage to permanently deny basic consumer rights to data access Taking advantage of my inability to obtain these records from any other sourceonly XXXX has this data Deceptive practices : " Let 's clear up an issue '' message implies resolution is possible and ongoing, but no mechanism is actually providedthis is deceptive misdirection that has persisted for nearly three years Terms of service almost certainly promised access to transaction history and account information, which XXXX has violated The nearly three-year duration of these practices demonstrates they are systematic and intentional, not mere oversights.

4. BANK SECRECY ACT - RECORD RETENTION REQUIREMENTS 31 U.S.C. 5311-5336 ; 31 CFR 1010.430 ( d ) Money transmitters like XXXX are required to maintain transaction records for five years and make them " accessible within a reasonable period of time '' ( 31 CFR 1010.430 ( d ) ). 
XXXX undoubtedly maintains my transaction records for regulatory compliance and anti-money laundering purposes. The fact that XXXX maintains these records for government access but denies consumer access to those same records violates : The accessibility requirement of the BSA regulations Basic fairness and consumer protection principles The regulatory purpose of consumer financial transparency If XXXX can produce my records for law enforcement or regulators within hours, they can certainly provide them to methe actual consumer who created those transactions.

5. CALIFORNIA STATE LAW VIOLATIONS California Money Transmission Act ( Cal. Fin. Code 2000 et seq. ) As a licensed money transmitter in California, XXXX must comply with state consumer protection requirements, including : Providing account holders with transaction records upon request Following proper account closure procedures with adequate notice Maintaining accessible records for California consumers Complying with California 's robust consumer protection standards XXXX 's nearly three-year denial of transaction records likely violates multiple California state law requirements beyond federal law.

6. INTERFERENCE WITH TAX COMPLIANCE OBLIGATIONS 26 U.S.C. ( Internal Revenue Code ) - Record-Keeping Requirements While not a direct cause of action against XXXX, it's critical to note that IRS regulations require taxpayers to maintain adequate records to substantiate income, deductions, and credits. By denying me access to transaction records showing : Who I paid ( payee names ) When I paid them ( dates ) How much I paid ( amounts ) What the payments were for ( transaction purposes ) XXXX is interfering with my ability to comply with federal tax law. This interference causes substantial harm and supports the unfairness claims under UDAAP. 
I am currently unable to file my XXXX tax return in compliance with IRS requirements because I lack the detailed XXXX records. This creates potential IRS penalties, interest, and enforcement actionsall directly caused by XXXX 's refusal to provide my own transaction data. 

SPECIFIC HARMS SUFFERED The denial of account access and transaction history for nearly three years has caused me substantial, ongoing, and escalating harm : Tax Compliance Harms ( Most Critical ) : XXXX Tax Return ( Filed XXXX ) - Incomplete and Potentially Inaccurate : I was forced to completely omit XXXX transactions from my XXXX tax return because I had no access to detailed records. This may have resulted in : Underreported legitimate business deductions Improperly categorized expenses Potential IRS audit exposure if discrepancies are discovered Loss of legitimate tax benefits I was entitled to claim XXXX Tax Return ( Currently Late ) - Can not File Properly : I am currently attempting to prepare my XXXX tax return but can not complete it because : Bank statements show only " XXXX '' as merchant with amounts and dates Critical payee information is missingI can not document who I paid Purpose of payments is unknownI can not categorize expenses or deductions I can not substantiate legitimate business expenses without payee details I can not properly track payments to specific individuals for tax reporting I am trapped : filing without this information risks IRS penalties for inadequate records, but I can not obtain the records I need Ongoing IRS Compliance Risk : The lack of proper documentation creates ongoing risk of : IRS audits and examinations Penalties for inadequate record-keeping Interest on unpaid taxes if deductions are disallowed Potential civil or criminal tax fraud accusations if discrepancies appear suspicious Attorney and accountant fees to resolve IRS disputes Late Filing Penalties : My inability to file XXXX taxes is resulting in : IRS late filing penalties ( 5 % per month, up to 25 % ) State of California late filing penalties Interest accumulating on unpaid taxes These penalties are directly caused by XXXX 's denial of my records Financial Harms : Budget Disruption : I can not track hundreds of transactions over XXXX, making it impossible to : Reconcile my finances for those years Prepare accurate budgets Understand my historical spending patterns Manage household finances effectively Inability to Make Required Payments ( XX/XX/XXXX - Present ) : Since the account closure, I can no longer : Make bill payments to payees in XXXX who only accept payment via app-based transfers like XXXX Send money to my fianc in XXXX, causing financial hardship Use the most convenient and cost-effective payment method for my needs My only alternatives are cash ( extremely inconvenient, especially when I am not in XXXX ) or finding other services with higher fees Loss of Financial Records : Beyond tax purposes , the transaction history represents nearly two years of my financial life. Without these records, I can not : Verify payments were made and received Dispute any errors or fraudulent transactions Reconstruct my financial history if needed for loans, background checks, etc.

Exercise any consumer rights that depend on having transaction records Personal and Emotional Harms : XXXX  and XXXX : The nearly three-year ordeal of being denied my own records, unable to file taxes properly, facing mounting IRS penalties XXXX and having XXXX XXXX for resolution has caused significant emotional XXXX  and XXXX. 
Time and Effort : I have spent substantial time over nearly three years attempting to : Contact XXXX through blocked customer service channels Research my legal rights and options Find alternative payment methods Attempt to reconstruct transactions from bank statements Prepare this complaint and gather documentation Violation of Fundamental Consumer Rights : The complete denial of access to my own financial data for nearly three years violates my fundamental rights as a consumer and undermines trust in financial institutions. This is not merely inconvenientit is a systematic deprivation of my rights. 


PATTERN OF SYSTEMATIC CONSUMER ABUSE The nearly three-year duration and XXXX 's complete stonewalling suggest this is not an isolated incident but rather a systematic pattern of consumer abuse : No specific policy violation cited - suggests arbitrary or pretextual account closure Complete customer service blackout - prevents any meaningful dispute or resolution Denial of basic data access rights- violates multiple federal laws " Let 's clear up an issue '' message for nearly 3 years - deceptive misdirection Ignoring repeated consumer requests- demonstrates intentional denial of rights This pattern suggests XXXX may be using account closures as a tool to avoid regulatory scrutiny, customer service costs, or legal accountabilitywhile knowingly violating consumer rights to access their own data. 
I respectfully request the CFPB investigate whether this is part of a broader pattern affecting other XXXX customers.

Company response to consumer: Closed with explanation