Consumer complaint received 2026-04-08 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Trouble accessing funds in your mobile or digital wallet — 
Company: Paypal Holdings, Inc
State: FL

Complaint narrative:
I am disputing a negative balance of {$290.00} USD currently placed on my PayPal account that I do not owe. On XX/XX/XXXX, I purchased vehicle tires through XXXX ( Order # XXXX ) using PayPal funded by my XXXX XXXX XXXX XXXX. The total order was {$400.00}. The tires were incompatible with my vehicle, and XXXX issued a refund of {$270.00} for the tires in the form of a store gift card on XX/XX/XXXX. A separate refund of {$89.00} for the installation service and a {$2.00} adjustment were successfully returned to my original payment method without issue. On XX/XX/XXXX, I opened a dispute with PayPal ( Case ID : XXXX ) for {$310.00}. During the investigation, PayPal issued a provisional credit of {$310.00} to my account. On XX/XX/XXXX, PayPal requested additional documentation and provided a deadline of XX/XX/XXXXXXXX at XXXX XXXX PST. I submitted documentation before this deadline. However, PayPal denied my case on XX/XX/XXXX, stating documentation was not received, even though the submission deadline had not yet passed. I immediately responded noting that documentation had already been submitted and the deadline remained open. After PayPal closed the dispute, they attempted to reverse the provisional credit to my original payment method but were unable to complete the reversal. As a result, PayPal applied a negative balance of {$310.00} to my account. I attempted to reopen the dispute multiple times ; however, the cases were closed without allowing full review of my explanation or supporting information. Additionally, on XX/XX/XXXX, I received an unrelated payment of {$27.00} from the XXXX XXXX XXXX XXXX Data Breach Settlement. PayPal applied this payment to my negative balance without my authorization, reducing it from {$310.00} to {$290.00}. This settlement payment had no connection to the XXXX transaction or dispute. My complaint is not about XXXX refund. My complaint concerns PayPal creating and attempting to collect a balance that results solely from PayPals internal reversal process rather than any money I agreed to repay or actually owe. The negative balance exists solely because PayPal could not complete its internal reversal process, not because I received funds I was obligated to repay. I did not receive duplicate funds from PayPal. The XXXX XXXX card issued by the merchant remains unused and was not requested as a substitute for a refund to my original payment method. Its existence does not create any repayment obligation to PayPal, and PayPal has not experienced a financial loss that would justify creating a debt obligation. PayPal has sent numerous collection communications regarding this balance over the past four months, at least once a week. These emails include statements such as This is an attempt to collect a debt and threaten referral to collections and account limitation. I request : 1. Removal of the negative balance from my account, 2. Return of the {$27.00} settlement payment applied without authorization, 3. Written confirmation that no debt is owed, and 4. Cessation of collection communications related to this matter.

Company response to consumer: Closed with explanation