Consumer complaint received 2026-03-19 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: WY

Complaint narrative:
My PayPal business account, which has been active and in good standing for approximately 6 years, was suddenly permanently restricted. The stated reason was that " based on the information we have today, there was information used to create this account that we can not not verify. '' It's important to note, that I have successfully verified and re-verified my identity and business information multiple times over the years, the information used to create the account 6 years ago had not changed beyond routine address updates as I've moved periodically, as well as added a 2nd business phone number at some phone ( which means I included more, not less, information to help maintain perfect compliance with PayPal, as well as transparency & reachability with my customers. My account has been in one of the higher tier statuses as a direct benefit of having had no issues ever. But despite routinely updating my info by my own initiative when relevant as well as every time PayPal has asked me to do so, I have immediately with no limitations or issues ever being placed/noted on my account. During this most recent instance in which I was prompted to submit a variety of verification documents, I was asked for several new things such as proof of purchase from my supplier, proof of business activities, ID verification, as well as proof of order fulfillment. All of which I had ( because my business is legit ), and provided immediately all that was requested with the greatest amount of detail and transparency possible. I even talked to a representative on the phone afterwards who apologized for the inconvenience, acknowledged that my account is in one of the best tiers a business can be in with PayPal because my account has been in perfect standing since it was created 6 years ago, and then offered me a credit as a thank you and curtesy for the delay in being able to access my funds as well as to make up for the fact PayPal already took their fees of $ XXXX, while not allowing me to access my legitimate, essential business income. She also helped me link a business bank account which I was told would also help verify my identity and thereby expedite the process of releasing the hold. Shortly thereafter, I opened the PayPal app on my phone to see a red notification bar at the top, stating my account had been permanently closed, and that I would be unable to withdraw my funds due to the aforementioned inability on their part to verify the information used to create the account 6 years ago. Assuming this to be a gross mistake that was the result of an Ai generated decision & response, I called to request a manual human review, where I was told for the first time by a PayPal representatives that my account would be reviewed & I'd get a response within within XXXX hours. But, I did not receive any follow-up or communication. Then after following up multiple times, I was eventually told by a PayPal representative that the reason nothing has been updated nor have I received any communication is because the restriction was not placed on the account by PayPal but rather XXXX, and that I would need to contact them. After numerous calls and promises made that I would be receiving manual review and prompt updates accordingly, weeks went by and I never got any information as my only source of income was still on hold. As a direct consequence of that, my business, personal finances, and life have imploded over night to unconscionable degree. Only after I ended up homeless, without food, or life saving essential medication as a direct consequence of this unconscionable hold by PayPal, I finally talked to a representative at XXXX who empathized with the severity and the reality of the situation and spent a few hours going back and forth helping to get my account unlocked. At that time though, he informed me that no reviews had been done and that they were still waiting on me to submit documentation that I did in fact provide that first day, as well as other items that I was given no information about, there was no notifications within the app indicating I needed to update/provide any further documentation, I received no emails, and was never once up until that point, informed I needed to submit more documentation, nor given an opportunity to do so ( which if I had known or been prompted to submit more documentation, I would have done so immediately and potentially could have resolved this a month ago ) ... Furthermore, the information that is displayed within the app vs desktop site vs business app is wildly inconsistent. For example, on the website it appears my account is in good standing with no notifications or indicators that there is still a hold, but when I login on the app, I see the hold. I've also received several push notifications saying my account was verified successfully and I could now transfer money to my account, only to go into the app/website, and not actually be able to do anything. Just to reiterate, as a direct consequence/impact of this hold, I have not been able to pay my essential bills in over a month, including rent, food, medication, my phone bill, or anything else. Everyday this drags on, my life & my health is being put in danger, while my finances are is being pushed to the brink of insurmountable collapse. The day I talked to a representative at XXXX while sitting homeless in a park, he assured me I had went above and beyond to provide everything needed to a more than satisfactory level for getting the account limitations lifted and my funds released. And then told me to wait XXXX hours for an update. Which AGAIN, never came. No follow up, no hey are you still alive, no anything and these criminals continue to hold my ONLY income hostage and if any small business or average person did what PayPal is doing to me and similarly to countless other people according to the reddit thread astutely called " PayPal, '' they would be indicted and imprisoned, and barred from ever doing business again. This is insanity. And only after I called AGAIN a week later, demanding answers and the immediate release of my money, did I get a message within the PayPal app saying that my money would be held for 180 day to hedge against change back but would be reviewed every 30 days for early release. Which I then had to call AGAIN to request ANOTHER review, because I have never once had a chargeback or had to issue a refund in 6 years. The risk is ZERO, and the only money that is currently being held, is from a single transaction of which I provided photos proving the order was fulfilled satisfactorily. Furthermore, the account restriction claims that it's due to an identity verification issue, meanwhile I have received confirmations that my identity has been successfully verified. Thus, the continued withholding of my funds is illegal and unconscionable and the FTC should file a criminal class action lawsuit agains these corporate CARTEL extortionate sociopaths. The withdrawable funds currently being held equate to {$950.00}, and there is an additional {$34.00} courtesy credit that I can use for online shopping. All money currently being held had been now for over a month, is associated with one transaction that I provided proof was fulfilled satisfactorily for skateboard decks and skate lessons. There have been no disputes, chargebacks, or refund requests associated with this transaction or any other in the 6 years I've had this business account. PayPal has provided inconsistent explanations, stating both that my account could not be verified and that the funds are being held to mitigate potential chargeback risk. I have yet to get a clear explanation of what specific information could not be verified, nor given any meaningful opportunity to resolve this issue directly with them. Additionally, after my account was restricted, I was instructed to link a bank account. After doing so, PayPal attempted to debit approximately {$990.00} ( and a separate {$1.00} charge ) from this newly linked account, which was not used in the original transaction and was not at all authorized by me. Similarly, I received no notifications about this and only found out when I went to link my business bank account to an unrelated platform that I saw I had a pending negative/overdrawn balance of {$990.00}. This occurred without clear authorization or notice, and I had to block the transaction through my bank. I have made multiple good-faith attempts to resolve this issue, I have been patient and diligent while navigating weekly crises due to my inability to access this essential income. I have submitted all requested documents and contacted every support channel publicly listed ( numerous times ) seeking a resolution. Yet, I have received nothing that would provide a clear path to resolution, nor any expiation that would satisfy and justify the continued withholding of my ONLY income. The continued withholding of my funds without a clear explanation or resolution process has caused significant financial harm, is unconscionable, and arguably violates Colorado & Federal consumer protection laws. I am requesting a full release of my funds and courtesy shopping credit, as well as an investigation into PayPal & XXXX by the appropriate government financial and consumer protection oversight bodies. One glance at the XXXX PayPal page, reveals a pattern of similar conduct by PayPal that is causing widespread harm in one of the most difficult economic moments in world history and this type of corporate cartel behavior needs to be stopped.

Company response to consumer: Closed with explanation