Consumer complaint received 2026-04-11 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: LA

Complaint narrative:
Complaint Against XXXX ( PayPal , Inc. ) Dispute of Fraudulent Transaction and Improper Liability I am submitting this complaint regarding a {$650.00} charge that XXXX is attempting to hold me responsible for, despite the transaction being the result of a scam and my immediate efforts to prevent any financial loss. Summary of the Issue : On [ insert date ], I was the victim of a scam in which I authorized a payment through XXXX under false pretenses. Within approximately one hour of the transaction, I recognized the fraud and took immediate action to report and stop the payment. Actions Taken Immediately After the Incident : I contacted XXXX by phone within approximately one hour of the transaction and reported it as fraudulent. I contacted my bank immediately, and my bank froze my account and successfully prevented the transfer of funds to XXXX. I filed a police report and provided XXXX with the report number and the investigating detectives contact information. I filed a complaint with the FBIs Internet Crime Complaint Center ( IC3 ). Key Facts : My bank did not release funds to XXXX, as the transaction was stopped. XXXX is asserting that I am responsible for the {$650.00} because I initially authorized the transaction. XXXX has not clearly demonstrated whether it actually incurred a financial loss or whether funds were disbursed to the recipient prior to my fraud report. I acted promptly, in good faith, and with due diligence to prevent any financial harm. Basis of Complaint : I dispute XXXX attempt to hold me financially liable under these circumstances for the following reasons : 1.Immediate Reporting : I notified XXXX within approximately one hour of the fraudulent transaction, which should have allowed sufficient time to prevent or mitigate any loss. 2.Prevention of Funds Transfer : My bank successfully blocked the transfer of funds, meaning XXXX was not funded for this transaction. 3.Lack of Transparency : XXXX has not provided clear documentation regarding the timing of any disbursement to the recipient or whether it actually suffered a loss. 4.Unfair Allocation of Risk : XXXX practice of advancing funds prior to receiving payment from a users bank should not result in automatic liability for the consumerespecially in cases of promptly reported fraud. Requested Resolution : I respectfully request that XXXX : Remove the {$650.00} balance from my account Provide a clear accounting of whether funds were disbursed and when Conduct a formal investigation into this transaction Confirm that no negative reporting or collections activity will occur related to this matter I believe I acted responsibly and promptly to report and prevent fraud. Holding me liable under these circumstances is unjust and places an unreasonable burden on consumers who act in good faith. I am requesting the Consumer Financial Protection Bureaus assistance in ensuring a fair and transparent resolution to this matter

Company response to consumer: Closed with explanation