Consumer complaint received 2025-06-01 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: TX

Complaint narrative:
1. On XX/XX/year>, I filed a dispute with PayPal for Transaction ID XXXX in the amount of {$29.00} ( Item not received ). On XX/XX/year>, PayPal ruled in my favor and the full {$29.00} was refunded to my PayPal balance. 
2. On XX/XX/year>, I filed a dispute for Transaction ID XXXX for {$200.00} ( Item not received ). On XX/XX/year>, PayPal again ruled in my favor and credited {$200.00} back to my account. 
3. On XX/XX/year>, I filed a dispute for Transaction ID XXXX for {$70.00} ( Item not received ). On XX/XX/year>, PayPal marked this dispute Refunded, and {$70.00} was returned to my balance. 
4. On XX/XX/year>, I filed a dispute for Transaction ID XXXX for {$12.00} ( Item not received ). On XX/XX/year>, PayPal ruled Won in my favor and refunded {$12.00}. 
5. On XX/XX/year>, I filed a dispute for Transaction ID XXXX for {$6.00} ( Item not received ). On XX/XX/year>, PayPal marked this transaction Refunded, and {$6.00} was credited back to my balance. 
6. On XX/XX/year>, I filed a dispute for Transaction ID XXXX for {$60.00} ( Item not as described ). On XX/XX/year>, PayPal ruled Won in my favor and {$60.00} was returned to my account. 
7. On XX/XX/year>, I filed a dispute for Transaction ID XXXX for {$63.00} ( Unauthorized transaction ). On XX/XX/year>, PayPal ruled Won in my favor and credited {$63.00} back to my balance. 
Total Dollars Refunded to Date : {$440.00} Number of Distinct, Fully Adjudicated Disputes : 7 ( all Won or Refunded ) 8. Ongoing Disputes : As of today, I have several additional disputes still pending with PayPal ( all filed in good faith for Item not received or Unauthorized transaction ). 
These pending cases demonstrate a consistent pattern of valid, bona fide claimsand underscore that I am not abusing any process, but simply exercising my right to dispute charges that did not meet PayPals own standards. 
9. On XX/XX/year>, PayPal sent an e-mail notifying me : We have closed your PayPal account due to repeated policy violations. Reason : excessive disputes and multiple personal accounts. Your remaining balance of {$130.00} will be held until further notice. 
This closure is plainly retaliatory. Each dispute I submitted was validPayPal ruled in my favor on every single oneyet they punished me for using the very dispute mechanism they promised in their User Agreement. 
10. Violation of Regulation E / EFTA ( 12 C.F.R. 1005.11 ) : Under federal law, a consumer who files a bona fide dispute within 60 days of a transaction statement can not be penalized. I filed each of the seven disputes listed above within the required timeframe, and PayPal promptly refunded every valid claim. Nevertheless, PayPal closed my account in direct retaliation for exercising my EFTA/Regulation E rightsan illegal act. 
11. Violation of UDAAP ( 15 U.S.C. 55315532 ) : PayPals actionclosing my account and withholding my {$130.00} balance because I filed too many disputesis an unfair and abusive practice. It exploits my need to access those disputed funds and directly contradicts PayPals own TOS language, which encourages consumers to file disputes for unauthorized or nondelivered transactions. 
12. Breach of Contract / Implied Covenant of Good Faith : PayPals User Agreement allows them to limit or close accounts at their discretion, but no contractual clause can override federal statutes. By promising a dispute resolution process and then punishing me for using it, PayPal breached the implied covenant of good faith and fair dealing embedded in our contract. 
13. On XX/XX/year>, I contacted PayPal Customer Support to demand either immediate account reinstatement or, at minimum, immediate release of my {$130.00} balance. Customer Support agents refused, stating : We do not reinstate closed accounts. You violated our policy by filing too many disputes. They also cited multiple account violations but produced no evidenceno screenshots, no e-mails, no proof I ever operated more than one active personal account. At no point did PayPal : - Provide written notice of any alleged multiple-account issue before freezing my funds. - Offer me a meaningful opportunity to resolve any supposed multiple-account problem. - Justify their closure with anything other than you filed too many disputes. 
14. As a direct result of PayPals retaliatory closure and refusal to release my {$130.00}, I have already suffered : - Bank Overdraft Fees : {$170.00} ( 5 separate overdraft fees at {$35.00} each ) on my linked checking account, directly caused by failed withdrawals when PayPal froze my funds. - Late Fees and Interest Charges : {$80.00} total, consisting of four separate late fees of {$25.00}, {$30.00}, {$15.00}, and $ XXXXeach incurred because my PayPal balance was inaccessible. - Lost Business Income : $ XXXX ( amount to be specified ), from gigs I was unable to complete due to lack of funds. - Emotional Distress and Lost Time : Countless hours wasted appealing to PayPalonly to be stonewalled in direct violation of federal law. 
15. Relief Requested : 1. Immediate reinstatement of my PayPal account, orat minimumimmediate release of my frozen balance of {$130.00}. 2. Written confirmation from PayPal that I will not face further retaliation for filing valid disputes in the future. 
3. Reimbursement of all fees, interest charges, and overdraft penalties incurred as a direct result of PayPals wrongful account closure, specifically : - Bank overdraft fees : {$170.00} - Late fees and interest charges : {$80.00} ( comprised of {$25.00}, {$30.00}, {$15.00}, and {$10.00} ) - Lost business income : $ XXXX ( to be specified with exact amount ) 4. Statutory damages under EFTA ( up to {$1000.00} ) for PayPals willful violation of Regulation E. 5. Any additional relief the Bureau deems just and proper to deter PayPal from continuing these unlawful practice

Company response to consumer: Closed with explanation