Consumer complaint received 2025-07-18 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: CA

Complaint narrative:
I had two PayPal accounts one created around XXXX ( email : XXXX ) and another used in XXXX ( email : XXXX ). In both cases, PayPal has locked me out of my accounts, preventing me from accessing transaction records, account details, or customer support. I can no longer log in, reset my password, or even communicate with PayPal through the app, customer service phone number, e-mail, or website. My email addresses and phone number appear to be blocked from accessing any account-related functions. 
In the XXXX case ( XXXX ), I received from sender XXXX XXXX {$2000.00} via PayPal. I transferred the funds to my linked bank account. Later, PayPal claimed that the sender filed a dispute and demanded repayment. However, the sender confirmed he did not file a dispute and never received any refund. 
I contacted PayPal several times via phone, including a call where the sender and I both spoke to a PayPal representative together about these two cases the XXXX case ( XXXX ) and the XXXX case ( XXXX ) clearly explaining that no dispute was ever filed. Despite this, PayPal ignored the facts, locked my account, and sent the case to collections. They told me that the only way to regain access was to pay the full amount, regardless of the disputes legitimacy.

PayPal has claimed that the issue may have originated with the senders financial institution, attempting to shift responsibility. However, this is false. The sender, XXXX XXXX, has confirmed multiple times that he never filed any dispute with PayPal or his bank, and has not received any refund. Furthermore, during our phone call with the PayPal representative, they clearly referenced the transaction ID, timestamp, and dispute ID confirming that all relevant records still exist within PayPals system. In fact, I was explicitly informed of the senders identity XXXX XXXX who was allegedly associated with the dispute. This demonstrates that PayPal had full knowledge of the transaction and the individuals involved, directly contradicting any suggestion that the dispute originated externally or without their awareness. 
In the XXXX case ( XXXX ), a similar situation occurred involving {$850.00} ( again with the same sender, XXXX XXXX XXXX. Although I no longer remember the full details, I was again locked out of the account with no ability to verify or dispute the charge. The account was shut down, and I was denied access to the Resolution Center or any communication channel. 
What is especially unfair and frustrating is that I am now : Fully blocked from accessing either account I can not retrieve transaction IDs, timestamps, or account activity Prevented from using the Resolution Center Unable to verify any information because PayPal has disabled all login access Being held accountable for disputes that the sender confirms they never initiated and for which they never received any refund Automatically forwarded to a collection agency after XX/XX/XXXX at XXXX AM ( XXXX ) Most of my communication with PayPal was via phone, and because these events span several years and my accounts are fully locked, I no longer have access to call records, screenshots, or transaction details. I tried reaching PayPal via email, but I received an automatic response that the inbox is no longer monitored. 
I believe PayPal has acted unreasonably and irresponsibly by : Denying me access to my own financial data and account history Refusing to properly investigate the disputes Locking both accounts without process or communication Sending the issue to collections based on false or unverified claims Offering no way for me to defend myself or resolve the situation I ask for CFPBs urgent help to ensure that this matter is investigated fairly and resolved transparently. I feel helpless and wrongfully penalized for disputes that were never filed, and my rights as a consumer have been severely violated.

Company response to consumer: Closed with non-monetary relief