Consumer complaint received 2026-06-09 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: NM

Complaint narrative:
Subject : PayPal Permanently Deactivated Account and Froze Funds After Requesting Impossible Documentation I am filing this complaint regarding PayPals permanent deactivation of my account and continued restriction of approximately {$3000.00} in legitimate funds. I mistakenly opened a PayPal business account while collecting residential rental payments as an individual landlord. I rent out a single residential property and am not operating a retail, fulfillment, or merchandise business. After receiving rental-related payments, PayPal placed limitations on my account and demanded business documentation that does not exist in my situation, including requests for a business license and fulfillment-related documentation. I repeatedly explained to PayPal that : I am an individual landlord ; I am not legally required to maintain a business license for this activity in my jurisdiction ; the requested fulfillment documentation is not applicable to residential rent payments ; and I therefore could not provide documents that do not exist. I contacted PayPal customer support through live chat on XX/XX/year>. During that interaction, a PayPal representative reviewed the account, acknowledged the issue, and informed me that the matter had been escalated to the backend/limitations team for review and possible limitation removal within XXXX hours. After no resolution occurred, I contacted PayPal again on XX/XX/XXXX. During the second interaction, another representative stated : that the prior elapsed time counted toward the review period ; that no additional information was currently required from me ; and that the matter had again been escalated for priority review. Despite these assurances, PayPal then permanently deactivated the account and sent a notice stating that my activity was not supported, without providing any meaningful explanation of what policy or activity allegedly caused the decision. PayPal further informed me that my funds may be held for up to 180 days before withdrawal may be permitted. At no point was I provided with a meaningful opportunity to resolve the issue through appropriate alternative documentation or a properly tailored review process for residential rental activity. My concern is that PayPal improperly routed my account into an inappropriate merchant-business verification workflow designed for commercial goods or services businesses, and then permanently deactivated the account because I could not provide business and fulfillment documentation that does not exist or is not legally required for my activity. I respectfully request that PayPal : Conduct a meaningful manual review of the account ; Provide a clear explanation of the alleged unsupported activity ; Reconsider the permanent limitation decision ; Release any undisputed funds without unnecessary delay ; Clarify whether the XXXX hold is actually necessary under the circumstances ; and Allow reasonable alternative verification methods appropriate for an individual landlord collecting residential rent payments. I can provide chat transcripts, screenshots, transaction details, and supporting documentation upon request, including the permanent limitation notice identified as Reference ID XXXX.

Company response to consumer: Closed with explanation