Consumer complaint received 2026-04-24 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: Paypal Holdings, Inc
State: WV

Complaint narrative:
To the Consumer Financial Protection Bureau, I am filing a formal complaint against PayPal , Inc. for multiple violations of Regulation XXXX ( XXXX XXXX XXXX ) regarding their handling of an unauthorized transaction on my account. PayPal has failed to follow federal law, misrepresented their obligations, and continues to withhold funds that should have been returned to me during their investigation. XXXX XXXX XXXX. Summary of the Issue An unauthorized transaction occurred on my PayPal account. I reported the unauthorized activity promptly. PayPal did not issue provisional credit within XXXX business days, as required by Regulation XXXX. PayPal attempted to override federal law by citing their internal User Agreement, claiming it supersedes Regulation XXXX. PayPal has repeatedly delayed, misdirected, and refused to comply with federal requirements. XXXX XXXX XXXX Timeline of Events I reported the unauthorized transaction to PayPal immediately after discovering it. PayPal acknowledged the dispute but did not provide provisional credit within the legally required timeframe. When I questioned the delay, PayPal representatives responded with scripted messages stating : They do not provide provisional credit, Their User Agreement governs the process, And they do not follow Regulation XXXX timelines. These statements directly contradict federal law. XXXX XXXX XXXX. Regulation XXXX Violations PayPal is in violation of the following requirements : XXXX Failure to Provide Provisional Credit Under XXXX XXXX XXXX ( c ) ( XXXX ) ( i ), if an investigation can not be completed within XXXX business days, the institution must provide provisional credit for the disputed amount. PayPal did not. XXXX Misrepresentation of Consumer Rights PayPal repeatedly claimed that their internal User Agreement overrides federal law. This is false and constitutes a deceptive practice. XXXX Failure to Conduct a Proper Investigation PayPal has : Provided inconsistent explanations, Ignored evidence I submitted, And failed to complete the investigation within the required timeframe. XXXX XXXX XXXX. Harm to the Consumer Because PayPal withheld provisional credit : I was deprived of access to my own funds, I experienced financial hardship, And I spent significant time attempting to resolve an issue that PayPal is legally obligated to handle correctly. XXXX XXXX XXXX. Requested Resolution I am requesting that the CFPB require PayPal to : XXXX. Issue the legally required provisional credit immediately, XXXX. Complete a compliant investigation under Regulation XXXX, XXXX. Cease misrepresenting federal law to consumers, XXXX. Provide a written explanation of how they will prevent future violations, XXXX. Correct any negative financial impact caused by their noncompliance. XXXX XXXX XXXX. Supporting Evidence I can provide : Screenshots of PayPals messages denying provisional credit, Timeline of communication, Proof of the unauthorized transaction, Any additional documentation the CFPB requests. XXXX XXXX Thank you for your attention to this matter. PayPals refusal to follow federal law has caused significant financial and emotional stress, and I am requesting the CFPBs intervention to ensure compliance with Regulation XXXX. Sincerely, XXXX XXXXXXXX XXXX

Company response to consumer: Closed with monetary relief