Consumer complaint received 2025-09-16 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: OR

Complaint narrative:
I am writing to formally file a complaint against PayPal , Inc. and its subsidiary XXXX regarding their mishandling of fraudulent transactions on my XXXX account and their ongoing refusal to resolve the matter in a timely and fair manner. 

Background On XX/XX/year>, I was the victim of an employment scam that resulted in fraudulent transfers totaling {$2900.00} through my XXXX account. These transactions were part of a larger fraud scheme totaling {$35000.00} that I immediately reported to my financial institution ( XXXX XXXX XXXXXXXX ), the FBIs Internet Crime Complaint Center ( IC3 ), and my local police department in XXXX, Oregon. 

XXXX XXXX XXXXXXXX investigated and determined the transactions to be fraudulent. They recovered the majority of the funds involved in the scam from another financial institution, XXXX XXXX XXXX XXXX in XXXX, Wisconsin. XXXX, however, has refused to align with these findings. 

XXXX Response For three months, I have engaged with XXXX customer support and their Office of Global Customer Complaints & Advocacy. Despite providing extensive documentation, including FBI and police reports, XXXX XXXX XXXXXXXX fraud findings, and evidence of the broader scam, XXXX continues to deny my claim. Their stated rationale is that the transfers were personal payments and therefore not covered by XXXX Purchase Protection Program.

This response is wholly inadequate and misapplied. These were not legitimate personal payments ; they were fraudulent transactions executed under false pretenses. By repeatedly citing policy language around " Purchase Protection, '' XXXX has failed to address the actual issue, i.e., protecting consumers from fraud. 

Pattern of Delay and Poor Handling - Slow and inconsistent responses : XXXX has repeatedly taken weeks to respond, requiring me to follow up multiple times by phone and email to check the status of my claim and appeals. 
- Failure to act on evidence : Despite clear, corroborated evidence from multiple authorities and financial institutions, XXXX has ignored the proof provided. 
- Contradictory statements : XXXX has stated that it has ceased collections activities on the account, yet refuses to clear the negative balance or allow me to close my XXXX and PayPal accounts. This contradiction leaves me in limbo.

- Dismissal of customer loyalty : I have been a PayPal customer since the XXXX. Despite decades of loyalty, PayPal/XXXX has chosen to hide behind policy and process rather than do what is right.

Harm This experience has been financially and emotionally draining. XXXX refusal to resolve this matter has forced me to spend countless hours chasing responses, documenting evidence, and attempting to clear my name. It has left me with an unresolved negative balance and ongoing stress, despite the fact that the fraud is well-documented and acknowledged by other institutions. 

XXXX  handling of this matter has been negligent, dismissive, and harmful. I urge the CFPB to hold PayPalXXXX accountable for their failure to protect consumers and to ensure that my case is resolved fairly. 

Thank you for your attention to this matter. I am happy to provide any additional documentation, including correspondence with XXXXPayPal, FBI and police reports, and XXXX XXXX XXXXXXXX fraud determinations. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation