Consumer complaint received 2025-10-19 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem with additional add-on products or services — 
Company: Paypal Holdings, Inc
State: GA

Complaint narrative:
Summary of Issue On XX/XX/year>, I made a purchase from XXXX through PayPal totaling {$240.00} USD ( Transaction ID : XXXX ). The products received were not as described, and XXXX acknowledged the error and approved a refund through its customer service channels. After I returned the items using the provided UPS return label ( Tracking ID : XXXX ), XXXX reversed the refund decision without valid explanation. 

I subsequently opened a dispute with PayPal ( Case ID : XXXX ) under Item Not as Described. Despite submitting proof of return, Nikes written refund approval, and supporting evidence, PayPal closed the case in favor of the seller on XX/XX/year>, citing only that the seller reported theyve delivered the item. 

This resolution disregards the material facts of the case, the sellers written refund agreement, and the consumer protection laws applicable to both XXXX and PayPal as a payment processor.

Facts and Evidence 1. Merchant Agreement and Refund Approval : Nikes chat support explicitly confirmed refund approval on XX/XX/year>, creating a binding contractual obligation to refund the purchase. 
Screenshots of this conversation and proof of return were submitted to PayPal during the dispute. 
2. Return Completed : UPS tracking ( XXXX ) confirms return shipment to XXXX, with proof of delivery attached in the PayPal case file. 
XXXX. PayPals Dismissal Without Due Review : PayPal closed the case in Nikes favor without addressing the evidence of refund approval or breach of refund commitment. 
PayPals seller delivered rationale is unrelated to the issue raised ( item not as described and refund reversal ) and therefore constitutes procedural unfairness and inadequate dispute handling.

Legal and Regulatory Basis 1. Federal Trade Commission ( FTC ) Mail, Internet, or Telephone Order Merchandise Rule ( 16 C.F.R. Part 435 ) : Merchants must deliver goods as described or issue prompt refunds if unable to do so. Nikes acknowledgment of misdelivery and refund approval, followed by refusal to issue the refund, violates this federal rule. 

2. Georgia Fair Business Practices Act ( O.C.G.A. 10-1-390 et seq. ) : This state law prohibits unfair or deceptive acts in commerce, including refusing to honor agreed-upon refunds after acknowledging fault.

3. PayPals Obligation as a Regulated Payment Service : Under 12 U.S.C. 5531 ( Consumer Financial Protection Act ), companies engaging in consumer financial transactions must not engage in unfair, deceptive, or abusive acts or practices ( UDAAP ).

PayPals dispute-resolution process here failed to consider material evidence and denied a fair review, amounting to an unfair and deceptive practice in violation of its regulatory obligations.

4. Breach of PayPal User Agreement : PayPals own Buyer Protection Policy promises a fair review when items are not as described. By disregarding the merchants documented refund approval and the consumers full compliance with return instructions, PayPal breached its contractual and fiduciary duty to the consumer.

Legal and Regulatory Basis 1. Federal Trade Commission ( FTC ) Mail, Internet, or Telephone Order Merchandise Rule ( 16 C.F.R. Part 435 ) : Merchants must deliver goods as described or issue prompt refunds if unable to do so. Nikes acknowledgment of misdelivery and refund approval, followed by refusal to issue the refund, violates this federal rule.

2. Georgia Fair Business Practices Act ( O.C.G.A. 10-1-390 et seq. ) : This state law prohibits unfair or deceptive acts in commerce, including refusing to honor agreed-upon refunds after acknowledging fault.

3. PayPals Obligation as a Regulated Payment Service : Under 12 U.S.C. 5531 ( Consumer Financial Protection Act ), companies engaging in consumer financial transactions must not engage in unfair, deceptive, or abusive acts or practices ( UDAAP ).

PayPals dispute-resolution process here failed to consider material evidence and denied a fair review, amounting to an unfair and deceptive practice in violation of its regulatory obligations.

4. Breach of PayPal User Agreement : PayPals own Buyer Protection Policy promises a fair review when items are not as described. By disregarding the merchants documented refund approval and the consumers full compliance with return instructions, PayPal breached its contractual and fiduciary duty to the consumer.

Company response to consumer: Closed with explanation