Consumer complaint received 2025-09-02 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Trouble accessing funds in your mobile or digital wallet — 
Company: Paypal Holdings, Inc
State: MN

Complaint narrative:
Refiled CFPB Complaint To Whom It May Concern, This is a refile of CFPB Complaint ID XXXX, submitted originally on XX/XX/year>, and resubmitted at the recommendation of the CFPB. 

My account was permanently limited by PayPal on XX/XX/year>. This letter documents each step, with precise timestamps, transaction IDs, and supporting documentation to show that I am the rightful account holder, all reimbursements were legitimate, and PayPals actions were improper under federal law. 

Statement of Identity and Purpose I am a legitimate product tester who participates in programs including Influenster, XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX This is not an exhaustive list. In such programs, sellers or agents sometimes reach out directly. These programs often require me to purchase items up front, after which I receive reimbursements. 

Reimbursements may not match the purchase price exactly, due to non-converage of PayPal fees, taxes, or partial reimbursements. I do not control the coordinators, the country of origin of payments, or the PayPal accounts from which reimbursements are issued.

I have proven my identity and ownership of this PayPal account, my bank account, and my credit card account by providing government-issued identification, a XXXX verification XXXX, and full financial statements. 


Chronological Timeline of Events XXXX XXXX XXXX XXXX XXXX XXXX  : Payment of {$36.00} received ( Txn ID XXXX ). 

XXXX XXXX XXXX XXXX XXXX  ) : Payment of {$45.00} received ( Txn ID XXXX XXXX 

XXXX XXXX XXXX XXXX XXXX XXXX : Payment of {$36.00} cancelled by PayPal XXXX XXXX XXXX XXXX XXXX XXXXXXXX ). 

XXXX XXXX XXXX XXXX XXXX  ) : Payment of {$45.00} cancelled by PayPal Payment Review ( XXXX ID XXXX ). 

XXXX XXXX XXXX XXXX XXXX XXXX : Reimbursement of {$100.00} received ( Txn ID XXXX ). 

XXXX XXXX XXXX XXXX XXXX  ) : Reimbursement of {$45.00} reissued ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX : Reimbursement of {$36.00} reissued ( Txn ID XXXX ). 

XXXX XXXX XXXX XXXX XXXX  ) : Attempted transfer of {$200.00} to XXXX XXXX XXXX XXXX XXXX XXXX  ). Transaction ID : XXXX. Transfer initially marked XXXX. 

XXXX XXXX XXXX XXXX XXXX ) : Transfer of {$200.00} ( Txn ID XXXX ) marked Denied. Funds were returned to balance as a new credit entry ( Txn ID XXXX ), with PayPal listing the sender as Unknown. 

XXXX XXXX XXXX XXXX XXXX  ) : Account permanently limited citing unusual movement of funds. ID and face verification were requested. 

XXXX XXXX XXXX XXXX XXXX  ) : Upload of government-issued ID and completion of PayPals facial verification. PayPal stated a XXXX hour review window ; no response was received within that timeframe. 

XXXX XXXX XXXX XXXX XXXX ) : First escalation email sent to PayPal XXXX and Compliance with ID, XXXX letter, and redacted bank and credit card statements to prove identity and address. 

XXXX ( XXXX PM XXXX ) : XXXX debits posted to my account as Corrections : - {$100.00} ( Txn ID XXXX ) - {$45.00} ( Txn ID XXXX ) - {$36.00} ( Txn ID XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX : Complaint filed with XXXX XXXX XXXX XXXX XXXX XXXX 

XXXX XXXX XXXX XXXX XXXX  ) : Complaint filed with Consumer Financial Protection Bureau ( CFPB ), ID XXXX. 

XXXX XXXX XXXX XXXX XXXX ) : Email from PayPal acknowledging receipt of my complaints. No resolution was provided. 

XXXX XXXX XXXX XXXX XXXX ) : Escalation email sent to PayPal XXXX XXXX ( XXXX ) with full, unredacted ID, XXXX verification letter, bank statement, credit card statement, and sample product testing log attached. 

XXXX XXXX XXXX XXXX XXXX  ) : The same XXXX debits of {$100.00} ( Txn ID XXXX ), {$45.00} ( Txn ID XXXX ), and {$36.00} ( Txn ID XXXX ) were relabeled in PayPals Activity download as Transfers, internal note XXXX. 

XXXX XXXX XXXX XXXX XXXX ) : The same XXXX debits of {$100.00} ( Txn ID XXXX ), {$45.00} ( Txn ID XXXX ), and {$36.00} ( Txn ID XXXX ) were again relabeled back to Corrections in PayPals Activity download. 


Legal Basis PayPals actions violate : Electronic Fund Transfer Act ( EFTA ) and Regulation E ( 12 C.F.R. Part 1005 ) : These laws require fair handling and prompt resolution of account errors, including unauthorized transfers and mislabeling of debits.

UDAAP ( Unfair, Deceptive, or Abusive Acts or Practices ) : Relabeling debits from Corrections to Transfers and back again constitutes a deceptive and abusive practice, misrepresenting account activity and preventing a clear audit trail.

Failure to Honor User Verification : I completed all required steps, including government ID upload, face verification, XXXX verification, and submission of full financial statements. PayPal still refused to restore my account or release funds. 

Supporting Documentation Exhibit A IDENTIFICATION AND BANK_CREDIT CARD STATEMENTS XXXX XXXX XXXX REIMBURSEMENTS RECEIVED XXXX Exhibit C BANK XXXX AND XXXX XXXXXXXX Exhibit D REDUCED BALANCE AND CORRECTION TRANSFER XXXX Exhibit E PAYPAL FULL TRANSACTIONS XXXX Exhibit XXXX XXXX CFPB COMPLAINT XXXX Exhibit G ESCALATION AND PAYPAL RESPONSE XXXX Exhibit H SAMPLE OF PRODUCT TESTING LOGS XXXX Exhibit G CFPB COMPLAINT REFILE XXXX Requested Relief I respectfully request that the CFPB require XXXX to : XXXX. Immediately restore full access to my PayPal account, as there is no valid legal or contractual basis for the limitation. 

XXXX. Return all seized reimbursements ( {$36.00}, {$45.00}, and {$100.00} ), which were legitimate product testing reimbursements and not fraudulent. 

XXXX. Provide a detailed written explanation for why my account was permanently limited and why funds were seized, including the exact policy provisions relied upon and supporting evidence. 

XXXX. Cease deceptive relabeling of debits changing the same transactions from Corrections to Transfers and back again which misrepresents the true nature of PayPals actions and obscures accountability. 

XXXX. Implement corrective procedures to prevent recurrence, including safeguards to ensure that legitimate consumer reimbursements are not frozen, seized, or mischaracterized in violation of federal consumer protection laws. 

PayPals conduct in this case amounts to the unauthorized seizure of funds, failure to honor verified account information, and misrepresentation of transaction records. Without intervention, these practices leave consumers vulnerable to unfair losses and stripped of access to essential financial services. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with non-monetary relief