Consumer complaint received 2024-04-03 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:
Dear CFPB Team, PayPal Permanently limited my account on XX/XX/year> I never realized this until later on when I logged into my account. I never received any form of notification on phone or email to notify me about this limitation. 

I was never informed of what I did wrong or the policy I violated. This is a violation of racketeering laws by freezing a customers funds without notifying the user or offering an explanation as to what policy I violated and how the violation occurred. 
At least, a notification was necessary in that situation. 


Your User agrement Policy is Clear on this which I will Quote below : Holds, Limitations, and Reserves What are holds, limitations, and reserves?

" Under certain circumstances, in order to protect PayPal and the security and integrity of the network of buyers and sellers that use the PayPal services, PayPal may take account-level or transaction-level actions. Unless otherwise noted, if we take any of the actions described here, well provide you with notice of our actions, but we retain the sole discretion to take these actions. To request information in connection with an account limitation, hold or reserve, you should visit the Resolution Center or follow the instructions in our email notice with respect to the limitation, hold or reserve. Account holds or limitations may impact your ability to move funds to or from your PayPal Savings account ''.

This is also a violation of your own agreement by failing to provide adequate notice on why the funds on my account were placed on hold or how I can obtain release on the held funds.

PayPal User Policy and acceptable use Policy can not be used as 'license to steal You cant ( or Shouldn't at least ) be able to just say REASONS and freeze users money or walk away with a users money which in my case is meant to pay for my doctorate studies and upkeep.

As you can see, the source of funds in my account are educational grants paid via direct deposits. 

If the XXXX  XXXX XXXX whom I have banked with for 16 years decided they no longer wanted my business and they are going to close my account, they would be legally required to cut me a check for the remaining balance on my account in a timely manner! 
But its quite understandable that PayPal is not a bank and works under different policies but nevertheless it is one thing for a company to decide " We do not want your kind here, please take your business/money elsewhere '' A lot different to decide, " We no longer want your kind in here and we are keeping all your stuff/finances/money for ourselves ''. 
The situation is not " On a computer Network '' to make this apparent theft okay for your case while its a violation of terms and rights in my case.

The vast majority of Fund seizures weather by government or most organizations I have worked with at different positions over my long career, require official notice to the target, at least after the facts are established, and an opportunity to contest the seizure administratively and in courts. Its a pesky thing referred to " the as 5th amendment ''!

If by any chance the government was requesting these actions, there would have been an independent notice to the targets.

What is happening to the hold of funds past 180 days of the time you notify users of the hold is PayPal doing their own thing which is illegal to me and something I strongly intend to pursue in courts due to violation of your own user agreement to me which you did by ; 1. Failing to notify me of any hold or restriction, something which has never happened to this day.

2. Placing hold of funds illegally past 180 days under the guise of violations of acceptable user policy without any notification of policy violated which you plan to use as a 'License to Steal '.

3. Failure to release hold on the funds in my PayPal account as stipulated in your user policy which to this day, I have never had chargeback, dispute or false claim.

As I informed PayPal Support before, I am undertaking a PHD program in Ageing and XXXX Studies, something which I am passionate about as I have lost XXXX of my relatives to this XXXX. I am doing it for quest for knowledge and to educate myself and my loved ones on how to live a better life and not fall to this tragedy as a result poor life choices. 
My tuition is fully dependent on a half paid scholarship I was granted and financial aid that I continue to receive once in awhile and its what PayPal have frozen under the guise of violations of terms of service.

In a couple of weeks, I have to make a decision weather to call off the semester as I have limited resources to Pay for my studies and to keep things going.

Therefore, I request your urgent assistance in resolving this impasse and great inconvenience brought about by PayPal.

Thank you in advance and I look forward to positive reply soon. 

Best regards, XXXX.

Company response to consumer: Closed with explanation