Consumer complaint received 2025-12-03 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem — 
Company: Paypal Holdings, Inc
State: NC

Complaint narrative:
Company : PayPal , Inc .

Product : Money transfer / Mobile or digital wallet Issue : Unauthorized transaction I am XXXX XXXX . My phone and financial accounts were hacked in XX/XX/year>. Two large XXXX charges were run through my PayPal wallet on XX/XX/year> : {$2000.00} PayPal determined this was unauthorized and reversed it.

{$9800.00} ( Transaction ID XXXX ) PayPal claimed there was no unauthorized use and that it was consistent with my transaction history. Case XXXX was opened XX/XX/year> and later closed/appeal denied.

These two charges are from the same date, same merchant, same hacking incident. I made no purchases from XXXX and received no tickets or services. When I contacted XXXX, the rep could not locate any account for me using my email/phone/address. 

My bank, XXXX  XXXX XXXX, investigated the overall incident ( about {$40000.00} across accounts ) and found these charges were fraudulent/unauthorized. They reversed their side. PayPal is the only party still treating the {$9800.00} as valid and has been attempting to collect a negative balance of about {$9900.00}, including an email stating this is an attempt to collect a debt. 

I reported promptly, cooperated, and later found some PayPal emails in spam ( which Ive retained ). I also emailed XXXX requesting all documents used to deny my claim and sent a signed authorization for XXXX XXXX XXXX to communicate on my behalf. 


Timeline of Key Events PayPal/XXXX  Fraud ( XXXX XXXX ) XXXX TIMELINE OF KEY ACTIVITIES -- PayPal/XXXX  Fraud Against XXXX XXXX __________________________________________________________________ Consumer : XXXX XXXX ( PayPal : XXXX XXXX Authorized Representative : XXXX XXXX XXXX ( XXXX | XXXX ) Primary Case ID ( PayPal ) : XXXX Disputed Transaction : {$9800.00} XXXX XXXX ID : XXXX Companion Transaction ( reversed ) : ~ {$2000.00} XXXX ( same day ) ________________________________________________________________ XX/XX/year> XX/XX/year> Compromise & Charges Two XXXX transactions run via PayPal on the same day : {$2000.00} ( later treated as unauthorized and reversed by PayPal ) {$9800.00} ( disputed ; PayPal later claims no unauthorized use ) XXXX did not authorize any XXXX purchase ; received no tickets/services. 

MidLate XX/XX/year> Bank Investigation ( XXXX ) XXXX  XXXX XXXX investigates broader hacking incident ( ~ {$40000.00} total across accounts ). 

XXXX determines fraud/unauthorized ; reversals issued on their side. 

( Attach XXXX  letter/statement ; if dated, insert exact date here. ) XX/XX/year> PayPal Case Opened PayPal Case ID : XXXX opened re : {$9800.00} XXXX transaction. 

XX/XX/year> XX/XX/year> PayPal No Unauthorized Use Notice Email from PayPal states no unauthorized use for {$9800.00} and directs consumer to work with seller or appeal. 

XX/XX/year> Appeal Acknowledged PayPal email confirms appeal received for case XXXX . 

XX/XX/year> ( evening ) Appeal Denied / Case Update PayPal email states case review complete ; maintains no unauthorized use ; asserts transaction is consistent with your PayPal transaction history. 

XX/XX/year> Negative Balance Collection Email PayPal sends Reminder of Action Needed : negative balance {$9900.00} ; states This is an attempt to collect a debt. 

XX/XX/year> Formal Denial PayPal email denies case XXXX ( related reference ), again stating item/service delivered to you.

( This denial references the same {$9800.00} event window. ) XX/XX/year> Consolidation of Evidence & Representative Authorization XXXX forwards PayPal notices to XXXX, summarizing calls in which PayPal agents gave inconsistent reasons ( initially item not received, later valid charge ). 

XXXX emails signed authorization naming XXXX XXXX XXXX as her representative to XXXX. 

XXXX requests investigation documents from PayPal at XXXX ( records, internal notes, merchant comms ). 

Current Posture Status : PayPal closed/denied the dispute on {$9800.00} while reversing the companion {$2000.00} charge from the same date/merchant. 

Consumer Position : Both charges arose from the same hacking incident ; XXXX  found fraud/unauthorized ; XXXX did not authorize XXXX purchases and received no benefit. 

Next Actions ( in progress ) : Executive escalation letter mailed to PayPal Legal ( includes authorization & evidence ).

CFPB complaint filed/being filed : seeks reclassification to unauthorized, full reversal, and cessation of collection/credit reporting.

Awaiting document production from XXXX.

Company response to consumer: Closed with non-monetary relief