Consumer complaint received 2026-01-12 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: Paypal Holdings, Inc
State: GA

Complaint narrative:
I am responding to PayPals statement asserting that refunds totaling {$3100.00} were returned to my Visa debit card and that I should review my debit card statements to locate these credits. This response does not resolve the issue and does not reflect what actually occurred. 

Summary of PayPals Position PayPal states that : Refunds for four payments ( to XXXX, XXXX, and XXXX  ) were issued between XX/XX/XXXX and XX/XX/2024 These refunds allegedly totaled {$3100.00} The refunds were returned to my Visa debit card Why This Response Is Incorrect / Incomplete 1. The debit card was linked to a XXXX XXXX account that was closed which I informed Paypal of closure prior. 
When these refunds were issued, the associated XXXX XXXX account was already closed. I did not receive these funds, either by debit card credit, bank deposit, or check. 
2. XXXX XXXX has confirmed receiving the refund funds. 
In response to CFPB complaints, XXXX XXXX has stated in writing that : The refund funds were received by XXXX XXXX XXXX XXXX retained {$38.00} The remaining amount was allegedly returned to PayPal This confirms the funds did not remain with my debit card or available to me. 
3. PayPal previously provided trace numbers showing the funds were sent to XXXX XXXX. 
PayPal conducted a prior investigation and confirmedusing trace numbersthat the refunds were successfully delivered to XXXX XXXX. However, I have never received the funds. 
4. PayPal has not provided proof that the funds were credited to me or reissued after return. 
To date, PayPal has not provided : Proof that the refunds were successfully posted to my debit card balance Proof that I accessed or received the funds Proof that PayPal reissued the funds to me after XXXX XXXX stated they were returned Current Status Based on XXXX XXXX CFPB response, PayPal is now in possession of the refunded funds ( less {$38.00} ). I do not have an active XXXX XXXX account, and the refunds were never made available to me. 

Requested Resolution I am requesting that PayPal : 1. Issue payment directly to me for {$3100.00} ( the refund amount XXXX XXXX states was returned to PayPal ) ; 2. Provide written confirmation of the payment method and date issued ; and 3. Provide transaction-level documentation showing the final disposition of each refund if PayPal disputes that it currently holds the funds. 

I have been without access to this money for an extended period due to conflicting statements between PayPal and XXXX XXXX. Given XXXX XXXX written confirmation that the funds were returned, PayPal must now complete the refund by issuing payment to me directly. 

Please respond in writing with confirmation of when and how my refund will be issued. 
I have also provided documentation from XXXX XXXX stating that the refunded funds were returned to PayPal, including the date the return occurred. This documentation directly contradicts PayPals assertion that the refunds were fully completed and received by me. 

Additionally, I have a screenshot from my PayPal account showing that a refund for the XXXX transaction in the same amount was returned to my PayPal account, which caused my PayPal balance to become negative. PayPal later issued a letter stating that they corrected my PayPal balance to resolve this issue. 

My account became negative on Paypal became negative for {$540.00} on XX/XX/2024, the same day XXXX XXXX claims to have sent back the XXXX - XXXX. 

On XX/XX/2024 Paypal corrected my account balance by adding {$540.00}. I spoke to numerous paypal supervisors regarding my refunds and they ensured that they were returning to my Paypal account if my bank was closed and the refunds never showed up. 

This raises a critical and unresolved question : What funds were returned to my PayPal account if PayPal maintains that all refunds were already completed and credited to my debit card? If the returned amount was not my money, then PayPal must explain the source of the funds used to correct my account balance. If it was my money, then PayPal has acknowledged receipt of at least part of the refunded funds and failed to release them to me. 

To date, PayPal has not reconciled this discrepancy or provided transaction-level documentation explaining : Why a refund amount returned to my PayPal account, Why that return caused a negative balance, What funds were used to correct that balance, and Why the remaining refunded funds were never issued to me. 

I am requesting PayPal provide a full accounting and issue payment for the refunded funds that XXXX XXXX has confirmed were returned.

Company response to consumer: Closed with explanation