Consumer complaint received 2025-05-18 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: CA

Complaint narrative:
* * Subject : * * Formal Complaint Against PayPal for Unlawfully Restricting Account & Withholding {$750.00} Without Justification * * To the Consumer Financial Protection Bureau ( CFPB ), * * I am filing this formal complaint against PayPal , Inc. for * * wrongfully restricting my business account and withholding {$750.00} of my legitimate funds * * without providing a valid reason, due process, or a timely resolution. This constitutes * * unfair and deceptive practices * * under consumer financial protection laws.

Summary of Complaint PayPal has : - Permanently restricted my business account without warning on XX/XX/scrub> 2025, despite full compliance with their policies. 
- Withheld {$750.00} of my moneyall funds came from my own verified bank accounts, with no disputes or fraud. 
- Extended the holding period from 120 days to 180 days ( now until XX/XX/year>2025 ) without justification. 
- Failed to provide a clear explanation or resolution despite multiple appeals. 
- Ignored prior technical issues ( repeated " Add Money '' failures ) that contributed to this unfair restriction. 

Detailed Timeline of Events Account Setup & Initial Problems ( XXXX 2025 ) - I opened a PayPal Business Account in XXXX XXXXXXXX XX/XX/scrub> 2025. 
- Immediately encountered system failures with the " Add Money '' featureit only worked once every 24 hours. 
- * * Reported this issue to PayPal over 10 times via phone calls ( logs available ). Representatives acknowledged the glitch but never fixed it.

- To work around PayPals system flaw, I began * * transferring money from my personal/business bank accounts instead. 

Sudden Account Restriction ( XX/XX/year>2025 ) - At XXXX XXXX I received an email asking me to verify my account. 
- By XXXX XXXX, before I could submit documents, PayPal permanently restricted my account and froze {$750.00}. 
- No prior warning or explanation was given. 
- PayPal agents later admitted no warning email was sent before the restriction ( they could not produce one ). 

PayPals Unjustified Holding Period & Extensions - Initially, PayPal stated funds would be held for 120 days ( until XXXX 2025 ). 
- Without notice, the hold was extended to 180 days ( XX/XX/year>2025 ). 
- No reason was provided for the extension. 
- All transactions were legitimate, from my own accounts, with no chargebacks or disputes.

Failed Resolution Attempts - I have called PayPal support 10+ timesagents were often rude and dismissive, repeating that the restriction was " automated '' and irreversible.

- Submitted multiple appeals via email and PayPals Resolution Center. 
- Provided full verification documents ( ID, bank statements, business details ). 
- No meaningful responsejust generic replies claiming my account was " high risk '' without evidence. 

Violations by PayPal PayPals actions appear to violate : - Consumer Financial Protection Act ( CFPA ) Unfair, deceptive, or abusive practices.

- Electronic Fund Transfer Act ( EFTA ) Wrongful withholding of funds. 
- PayPals own User Agreement They failed to provide : - Advance notice before restricting my account. 
- A clear explanation for the restriction. 
- A reasonable resolution timeline ( 180 days is excessive with no fraud risk ). 

Harm Caused by PayPals Actions- {$750.00} unlawfully frozen, causing financial strain.

- Lost business revenueunable to process PayPal transactions.

- Wasted time ( dozens of calls, emails, and appeals ).

- Emotional distress due to PayPals refusal to resolve the issue.

Requested Resolution I urge the CFPB to investigate PayPal and require them to : 1. Immediately release my $ XXXX valid reason exists to withhold it. 
2. Provide a written explanation for the restriction and extension.

3. Compensate me for damages ( lost business, stress ).

4. Penalize PayPal if they violated consumer protection laws.

Next Steps Requested from CFPB - Open an investigation * * into PayPals unfair practices.

- Require PayPal to respond * * within 15 days.

- Ensure my funds are returned promptly.

This case reflects a pattern of PayPal abusing its power by restricting accounts and withholding funds without cause. I appreciate your assistance in holding them accountable. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Ca XXXX

Company response to consumer: Closed with explanation