Consumer complaint received 2026-05-06 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: CA

Complaint narrative:
PayPal permanently deactivated my account without providing any reason, any written notice citing a specific policy violation, or any opportunity to appeal or submit documentation. The only transaction attempted on my account in recent months was an attempt to redeem a {$60.00} XXXX XXXX XXXX XXXX XXXX a standard consumer rebate card issued by The XXXX Bank, XXXX. pursuant to a XXXX license, as part of a promotional tire rebate program run by The XXXX XXXX XXXX XXXX XXXX ( Offer XXXX, promotion period XXXX ). I have full documentation establishing my legitimate ownership of this card, including : - The original XXXX tire purchase receipt - The submitted rebate form - Email confirmation from XXXX confirming my rebate claim and card issuance - The card 's terms and conditions ( issued by The XXXX Bank XXXX XXXX license XXXX Background on the transaction : The virtual card could not be added to Apple Wallet and did not function at in-store terminals, which is consistent with its terms ( virtual cards are restricted to online and phone/mail orders ). I called The XXXX Bank card support line and was explicitly directed by their representative to attempt redemption via PayPal or XXXX. I attempted both platforms. Neither accepted the card. I subsequently redeemed the card successfully through my business 's Stripe virtual terminal, confirming the card was fully valid and that I am the legitimate cardholder. The PayPal transaction attempt was made in good faith, at the direct instruction of the card issuer 's support representative. PayPal XXXX automated systems apparently flagged this attempt and permanently deactivated my account. When I contacted PayPal customer support : XXXX. They confirmed the deactivation is permanent. XXXX. They stated they can not disclose the reason for deactivation. XXXX. They informed me I can not close the account myself, nor unlink my bank account and credit cards leaving my financial data exposed with no recourse. XXXX. They provided no mechanism to submit my documentation proving I am the legitimate owner of the card. I am requesting the CFPB investigate : XXXX. PayPal XXXX permanent deactivation of a consumer account based on a single, legitimate transaction a rebate card from a XXXX XXXX company, issued by a federally regulated bank with no notice, no reason, and no appeal process. XXXX. PayPal XXXX refusal to allow me to close my account or remove linked financial instruments ( bank account and credit cards ), which I believe constitutes an unfair practice that leaves consumers without the ability to protect their own financial data. XXXX. Whether these practices constitute unfair, deceptive, or abusive acts or practices ( XXXX ) under XXXX U.S.C. XXXX. I am a California resident and am separately invoking my CCPA data deletion rights. I am requesting that the CFPB require PayPal to : ( XXXX ) provide a written explanation for the deactivation, ( XXXX ) immediately unlink all financial instruments from my account, and ( XXXX ) formally close the account and initiate data erasure.

Company response to consumer: Closed with explanation