Consumer complaint received 2025-05-01 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt was paid
Company: Paypal Holdings, Inc
State: CA

Complaint narrative:
COMPLAINT AGAINST PAYPAL I bought a watch at XXXX for {$1100.00} vide XXXX XXXXransaction ID XXXX dated XXXX and made payment with my XXXX XXXX XXXX  XXXX through PayPal via a scheme PayPal touts as PAYPAL PAY IN 4 where one can make payment in 4 equal installments every two weeks. The four payments for this transaction were made as follows.. 
XX/XX/XXXX XXXX XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Meanwhile, I found that the watch I had received is defective as it was losing time erratically. I tried to resolve the seller but seller refused to acknowledge or help. I tried to set up a dispute with PayPal but PayPal did not help for one reason or another. As a last resort, I filed a claim with XXXX XXXX XXXXXXXX as follows. 
Original claim made XX/XX/XXXX For total of {$1100.00} paid in four installments on PayPal pay in 4 Claim ID XXXX {$280.00} Claim ID XXXX {$280.00} Claim ID XXXX {$280.00} Claim ID XXXX {$280.00} Total Claim {$1100.00} When this happened, PayPal told me that when one pays with PayPal pay in 4, one gives up the right to follow up with seller for a bad item received and that PayPal has paid the seller already and that now I owe the money to PayPal and my claim with my credit card does not affect the seller but affects PayPal ( as PayPal already paid the seller ). I did not know this when I paid with PayPal pay in 4 as such conditions were never made clear and had I known that I lose consumer rights using PayPal pay in 4 for whichever reason, I would never have used PayPal pay in 4.

I found out that PayPal was unreasonable and not customer friendly ( customer care was of no help during the at least 20+ calls I made to PayPal customer care- my call recordings should be available with PayPal as they said the calls are recorded ).

Due to threats and harassment from PayPal of being reported to credit agencies and feeling trapped in all directions and not wanting my credit report to get hurt, I withdrew my claims in XXXX of XXXX by calling XXXX XXXX XXXXXXXX. Even though I withdrew my claim in XXXX of XXXX, XXXX XXXX XXXXXXXX took almost 3 weeks to actually withdraw my claims but eventually, my claims were withdrawn on XXXX, XXXX. Written proof of withdrawal of claims as provided by XXXX XXXX  XXXX is attached. 
In the meantime, my correspondence with seller bore fruit and he refunded me {$270.00} to compensate me for receiving a bad watch. 
After, seller refund, now I owed PayPal $ XXXX $ XXXX {$870.00} Net result at this time is that since I had withdrawn my claims ( proof attached ), I had paid PayPal FULL {$1100.00} but due to refund from seller, I really only owed {$870.00}. So currently it is in fact PayPal that owes me {$270.00} and my repeated requests to get my money have been ignored. 
Not only that, PayPal said that XXXX XXXX XXXXXXXX written proof is wrong and they did not received money from XXXX XXXX XXXXXXXX. As a customer, I paid FULL {$1100.00} to XXXX XXXX XXXX XXXX XXXX XXXX  has given written proof that they have forwarded the {$1100.00} to PayPal ( proof attached ). PayPal has not only kept the {$270.00} refunded to me by the seller but are attempting to falsify records by outright denying that they received the money. I have of course, paid the money from my end to XXXX XXXX XXXXXXXX who are my credit card company and this can be verified with XXXX XXXX XXXXXXXX. XXXX XXXX XXXX in return has provided written communication that they have forwarded the money to PayPal. 
PayPal is taking advantage of its size and the fact that a small consumer is mostly helpless and has not fraudulently kept my refund of {$270.00} provided by the seller AND kept the money that I paid via XXXX XXXXXXXX XXXX but on top of that got a collection agency named XXXX  involved who are unaware that there is in fact NO debt to be collected but all of this is negligence and/or fraud initiated by PayPal. 
I humbly request help. Please see attached written proof provided by XXXX XXXXXXXX XXXX and my written correspondence with PayPal. My follows ups with XXXX XXXX  XXXX can be requested from XXXX XXXX  XXXX if necessary. 

PLEASE FIND ATTACHED. 
1. 4 letters from XXXX  XXXX XXXX on their letterhead clearly indicating claims as withdrawn 2. copy of my credit card bill clearly showing payments debited to my account and paid at my end.

3. Correspondence with paypal complaints regarding this case. This correspondence is over and above tens of calls made to paypal attempting to resolve the issue which was totally paypals fault.

Company response to consumer: Closed with monetary relief