Consumer complaint received 2026-04-06 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:
Unauthorized ACH Re-Debit Under New Authorization ID Regulation E Violation PayPal Pay in XXXX To the Consumer Financial Protection Bureau, I am filing this complaint against PayPal , Inc. regarding unauthorized ACH debits totaling {$310.00} from my XXXX bank account ( XXXX ) in connection with a Pay in XXXX purchase from XXXX ( Transaction # XXXX, XX/XX/XXXX ). SUMMARY : I paid XXXX of XXXX Pay in XXXX installments before disputing the transaction with XXXX. After XXXX reversed my chargeback, PayPal treated the entire {$310.00} as unpaid and re-debited all XXXX installments on XX/XX/XXXX under a brand new ACH authorization ID ( XXXX ) XXXX I never authorized. I currently have no sunglasses AND no refund, meaning I have paid {$310.00} for nothing. DETAILED TRANSACTION HISTORY ( Chase account XXXX ) : Step XXXX Original Pay in XXXX installments paid ( ACH ID : XXXX ) : XX/XX/XXXX : - {$78.00} XX/XX/XXXX : - {$78.00} XX/XX/XXXX : - {$78.00} Total paid : {$230.00} ( Note : I submitted my Chase dispute before my XXXX installment of ~ {$78.00} became due. ) Step 2 XXXX chargeback reversals ( XX/XX/XXXX ) : + {$78.00} XXXX = + {$230.00} returned to my account Step 3 XXXX ruled against my dispute ( XX/XX/XXXX ), reversing the chargeback. Step 4 PayPal re-debited my account for ALL XXXX installments on XX/XX/XXXX under a NEW ACH authorization ID ( XXXX ) : XX/XX/XXXX : - {$78.00} XX/XX/XXXX : - {$78.00} XX/XX/XXXX : - {$78.00} XX/XX/XXXX : - {$78.00} Total re-debited : {$310.00} NET FINANCIAL HARM : {$310.00} paid in full, product returned to merchant, no refund received. WHY THIS IS A REGULATION E VIOLATION : The XX/XX/XXXX debits were processed under ACH ID XXXX a completely new authorization ID from the original XXXX series. I never authorized a new preauthorized debit series. Under 15 U.S.C. 1693e and Regulation E ( 12 CFR Part 1005 ), preauthorized electronic fund transfers require written authorization from the consumer. PayPal unilaterally created a new ACH debit series without my knowledge or consent. Furthermore, the underlying merchant dispute remains unresolved in my favor : I returned the sunglasses to XXXX XXXX on XX/XX/XXXX 18 days after delivery, within their published XXXX return window. XXXXXXXX XXXX issued me a Return Authorization Slip explicitly stating the refund method as " Original Form of Payment. '' XXXXXXXX XXXX refused to refund me based on a " damaged frames '' justification that does not appear anywhere in their published return policy. XXXXXXXX XXXX has provided inconsistent explanations, first claiming I exceeded the XXXX window ( false ), then switching to the damage claim. PayPal denied my Buyer Protection claim without adequately investigating the merchant 's failure to honor their own written return authorization. I am requesting the CFPB : 1. Require PayPal to reverse the XX/XX/XXXX re-debits totaling {$310.00} as unauthorized under Regulation E 2. Require PayPal to honor Buyer Protection and refund {$310.00} given the merchant 's failure to honor their written refund commitment 3. Investigate PayPal 's practice of re-debiting consumers under new ACH authorization IDs following chargeback reversals without obtaining fresh consumer authorization Supporting documents available : XXXX bank statement ( showing both ACH IDs ), PayPal transaction records, XXXX XXXX Return Authorization Slip ( stating " Refund Method : Original Form of Payment '' ), merchant email correspondence showing inconsistent denial reasons, and XXXX return delivery confirmation. Complainant : XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX XXXX ( XXXX ) XXXX XXXX Transaction : XXXX

Company response to consumer: Closed with explanation