Consumer complaint received 2026-04-01 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Managing, opening, or closing your mobile wallet account — 
Company: Paypal Holdings, Inc
State: KY

Complaint narrative:
I am filing this complaint against PayPal regarding their refusal to allow me to open an account, based on fraudulent activity that I did not commit and that resulted from identity theft. I have never knowingly opened or used a PayPal account. However, about a week ago, I attempted to create an account because my current employer requires PayPal as a payment method. When I was unable to complete the process, I contacted PayPal customer service for assistance and provided my information for verification. During this process, I was informed that my personal information is already associated with multiple PayPal accounts. This was extremely concerning because I have never created any accounts with PayPal. I immediately explained that I have been a victim of identity theft between approximately XXXX and XXXX, during which unknown individuals used my personal information without my authorization. After discovering the identity theft, I took responsible steps to protect myself, including reporting the situation to the Federal Trade Commission and placing fraud alerts with the major credit bureaus. I explained all of this to PayPal and made it clear that any accounts associated with my information were created fraudulently. Despite this, PayPal representatives told me that due to past activity linked to those accounts, I have been permanently banned from their platform. I was explicitly told that I will not be allowed to open a PayPal account now or in the future, and that they have effectively ended any possibility of providing me with services. I asked for an explanation and requested details about the accounts and activity associated with my information, but I was not provided with any clear or specific information. I was not given an opportunity to verify my identity in relation to those accounts or to resolve the issue. Additionally, around XXXX, I received a collection notice for a XXXX debt in the approximate amount of {$150.00} {$180.00}. At the time, I did not understand where this debt came from, but I paid it in good faith. I now believe this debt was connected to one of the fraudulent accounts created using my identity. This situation has caused significant harm. I am currently unable to access a service that is required for my employment, which affects my ability to receive income. It is extremely concerning that I am being permanently denied access based on fraudulent activity committed by third parties, even after I explained and reported the identity theft. I have also experienced similar issues with other financial institutions, which suggests that incorrect or misattributed information related to identity theft may be affecting my financial profile more broadly. Overall, PayPal has refused to investigate properly, provide transparency, or give me a fair opportunity to resolve this issue, and I am being treated as if I were responsible for fraud that I did not commit.

Company response to consumer: Closed with non-monetary relief