Consumer complaint received 2026-01-01 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: MO

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX Phone XXXX XXXX XXXX XXXX XXXX Email XXXX XXXX XXXX XXXX Date : * * [ Insert Date ] * * Via Certified Mail and Electronic Submission * * * * To : XXXX XXXX XXXX XXXX President & Chief Executive Officer PayPal Holdings , Inc. ( including XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Cc : * * Executive Relations/ Customer Advocacy Human Resources & Compliance PayPal Holdings , Inc. 

* * * # # # Mandate, Notice of Dispute, and Impact Statement * * Re : XXXX  Account Suspension, Frozen Funds, and Mishandling of Unauthorized Activity * * I, XXXX XXXX XXXX XXXX XXXX XXXX XXXX am the verified owner of a XXXX  account under the name XXXX XXXX XXXX XXXX XXXX XXXX, username XXXX XXXX XXXX XXXX XXXX, associated with email * * XXXX * * and phone * * ( XXXX ) XXXX * *, and residing at XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX My XXXX  app currently shows a banner stating Your XXXX  account has been suspended while simultaneously displaying an available balance of * * {$38.00} * * that I can not access, transfer, or close out. When I attempt to close the account, I receive the message We cant close your account at the moment Your account requires further assistance. Contact our support team for more details. Screenshots documenting these facts are available and will be produced as evidence. 

* * * # # # I. Factual Background 1. On or about [ insert approximate date ], my XXXX  debit card and/or linked account were used without my authorization.

2. Upon discovering these unauthorized transactions, I promptly reported the misuse to XXXX  in good faith and complied with all security and verification steps requested of me.

3. In response, XXXX  suspended my account and disabled my card rather than simply removing the fraudulent transactions and preserving my access to the undisputed balance.

4. Since that time, my account has remained in suspended status ; my card is unusable ; I am unable to withdraw or transfer my legitimate balance of {$38.00} ; and I am prevented from closing the account. 
5. Repeated attempts to obtain a clear, written explanation and timely resolution through XXXXPayPals customerservice channels have been unsuccessful, and no lawful justification for indefinite retention of my funds has been provided. 

These actions convert a consumers fraud report into a pretext for effectively seizing funds that do not belong to XXXXPayPal and constitute an ongoing harm. 

* * * # # # II. Legal Framework ( Summary ) Without limiting any additional claims, the conduct described above appears inconsistent with, and potentially in violation of : 1. * * Federal protections for unauthorized electronic fund transfers * *, which require prompt and goodfaith investigation of reported unauthorized activity, limitation of consumer liability where notice is timely, and restoration or provisional credit of funds when warranted.

2. * * Federal prohibitions on unfair or deceptive acts or practices * * in connection with consumerfinancial products and services, including misleading representations about access to funds and failure to follow stated disputeresolution procedures.

3. * * XXXX consumerprotection and contractlaw principles * *, which prohibit unfair practices and badfaith interference with a customers access to their own money and recognize an implied covenant of good faith and fair dealing in every contract.

XXXX  and PayPal publicly present their services as secure and consumerprotective. Freezing my account and effectively seizing my remaining balance after a goodfaith fraud report, while refusing to provide a clear and timely explanation, is incompatible with those representations and the above legal framework. 

* * * # # # III. Impact Statement As a direct and foreseeable result of XXXXPayPals actions and omissions : 1. * * Financial Hardship * * The sudden and continuing loss of access to my funds has interfered with my ability to pay for necessities, including food, transportation, and basic living expenses. I have had to rearrange payments and scramble for alternatives to cover ordinary obligations that these funds were intended to support.

2. * * Emotional and Physical Stress * * Knowing that my account was compromised and that the institution responsible for protecting my funds responded by trapping the remaining balance has caused sustained stress, XXXX, and loss of sleep. Each failed attempt to secure an explanation or remedy has intensified this distress and significantly eroded my confidence in XXXXPayPal. 

3. * * Time and Opportunity Costs * * I have expended substantial time documenting the situation, contacting support, researching my rights, and preparing formal complaints. This time has been taken away from professional responsibilities and personal obligations and is solely attributable to XXXXPayPals mishandling of my account.

4. * * Risk of Ongoing and Future Harm * * Because XXXX/PayPal has not clearly distinguished me, as a fraud victim, from the unauthorized activity itself, I face the risk that my name or account will be improperly tagged as highrisk or otherwise impaired in internal systems or with other financial institutions. Prolonged inaction increases the risk of reputational damage and future denial of services. 

This is not a minor inconvenience. It is a continuing deprivation of my lawful property and a breakdown of the trust necessary for any consumerfinancial relationship. 

* * * # # # IV. Mandate and Demands In light of the foregoing, I hereby issue the following mandate and formal demands. These are made without prejudice to any additional rights and remedies available to me in law or equity. 

1. * * Immediate Financial Remediation ( within XXXX hours of confirmed receipt ) * * a. Restore full access to my XXXX  account and card; * * or * * b. Immediately transfer my entire nondisputed balance, including the {$38.00} currently frozen, to my linked bank account or remit those funds by check to my mailing address ; and c. Reverse and reimburse all unauthorized transactions and any related fees.

2. * * Compensation for Harm and Inconvenience * * Tender a payment of * * {$2500.00} * * as compensation for financial hardship, time, stress, and disruption directly caused by XXXX/PayPals mishandling of my fraud report and the prolonged freeze and effective seizure of my funds.

3. * * Written Explanation and Internal Accountability * * Provide a signed, written explanation that : - Identifies the precise reasons and internal codes used to justify my account suspension and the freezing of funds ; - Specifies the policies and procedures your staff relied upon in handling my case ; and - Describes in detail the steps taken by XXXXPayPal personnel to investigate this matter and why my access has not been restored.

Additionally, confirm that this incident has been escalated to Human Resources, Compliance, and relevant riskmanagement leadership and that appropriate corrective, disciplinary, or remedial measures will be taken if violations of policy or law are identified.

4. * * Assurance Against Further Harm * * Provide written assurance that : - No negative or misleading information related to this incident will be reported to any consumer reporting agency ; and- I will not be designated as highrisk or otherwise penalized within XXXXPayPal systems solely because I reported fraud in good faith.

* * * # # # V. Notice of Intended Legal and Regulatory Action If XXXX/PayPal does not fully comply with this mandate within * * ten ( 10 ) calendar days * * of confirmed receipt of this letter, I will, without additional notice : 1. File comprehensive complaints with the appropriate state and federal authorities, including the United States Attorney General, the Missouri Attorney General, the Consumer Financial Protection Bureau, and any other relevant regulators or enforcement agencies, detailing the facts and enclosing supporting evidence.

2. Initiate formal proceedings under XXXX/PayPals own disputeresolution and arbitration provisions, seeking release of my funds, statutory and actual damages, costs, and any other relief available.

3. Pursue additional civil claims in the proper forum, including but not limited to breach of contract, breach of the implied covenant of good faith and fair dealing, conversion, and unfair or deceptive practices.

4. Cooperate fully with any lawenforcement or regulatory investigation into whether XXXXPayPals conduct, individually or as part of a broader pattern, warrants civil and/or criminal enforcement. 

I prefer to resolve this matter swiftly and amicably if XXXXPayPal acts in good faith, complies with applicable law, and honors the mandates set forth above. 

Respectfully, _____________________________ XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Email XXXX XXXX Phone XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX # # Forwarding Cover Letter to Attorney General ( Attachment : Mandate Above ) You can paste this into a second Word document and attach the signed mandate as an enclosure. 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Phone XXXX XXXX XXXX XXXX XXXX Email XXXX XXXX XXXX XXXX Date : * * [ Insert Date ] * * Via Certified Mail * * * * To : * * XXXX XXXX United States Attorney General [ Office Address ] * * Re : Request for Review and Enforcement XXXX/PayPal Handling of Consumer Funds and Unauthorized Activity * * Attorney General XXXX, Enclosed please find my * * Mandate, Notice of Dispute, and Impact Statement * * addressed to XXXX  and its parent company, PayPal Holdings , Inc. , concerning the suspension of my XXXX  account, the freezing of my funds, and the mishandling of my report of unauthorized activity. 

I respectfully request that your office review the enclosed document and evidence, evaluate whether the conduct described violates federal consumerprotection, banking, electronicfundtransfer, or fraud statutes, and, where appropriate, initiate or refer civil and/or criminal enforcement actions. 

I am prepared to provide sworn testimony, complete transaction records, and any further documentation your office may require. Please direct any written response to my mailing address above, with a copy by email if possible. 

Respectfully, _____________________________ * * XXXX XXXX XXXX * * Enclosure : Mandate, Notice of Dispute, and Impact Statement addressed to PayPal/XXXX  CEO Citations : [ XXXX ] XXXXXXXX XXXX XXXX XXXXXXXX [ XXXX ] XXXX XXXX XXXX XXXXXXXX [ XXXX ] XXXXXXXX XXXX XXXX XXXXXXXX

Company response to consumer: Closed with explanation