Consumer complaint received 2026-04-01 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Transaction was not authorized
Company: Paypal Holdings, Inc

Complaint narrative:
I am filing this complaint regarding unauthorized transactions conducted through my account with PayPal, which resulted in a negative balance that I am now being asked to repay despite clear evidence of fraud. My PayPal account was linked to my account with XXXX, and I initially reported the issue to XXXX after noticing suspicious activity because my bank account was directly connected to PayPal and used as a funding source. This situation arose in the context of a broader security incident in which my mobile phone, wallet, and work laptop were stolen, leading to multiple compromised accounts. Following my report, XXXX conducted a formal investigation and confirmed that my account had been compromised, that my financial information was accessed without authorization, and that the transactions in question were unauthorized and fraudulent. Importantly, the disputes I filed with XXXX regarding these transactions were resolved in my favor, and the bank took corrective action, including reversing the unauthorized charges where applicable. Despite this clear determination by a regulated financial institution that both my bank account and the linked PayPal transactions were compromised and unauthorized, PayPal has placed my account in a negative balance and is holding me financially liable for transactions that I did not initiate, did not authorize, and did not benefit from. PayPals position appears to rely solely on the fact that the transactions were processed on their platform, without adequately considering that the funding source itself was compromised and that the fraud has already been independently verified and resolved in my favor by XXXX. In addition, I am now being threatened with further action by PayPal for a balance that I am not liable for. I have received communication stating that my account remains negative in the amount of {$1100.00} USD and has been negative for 109 days, and that if I do not pay this balance by XX/XX/year>, my account may be sent to an outside collection agency. This is extremely concerning given that the underlying transactions have already been confirmed as fraudulent. This creates an unjust situation where I am being pressured to repay funds that were the result of a confirmed account takeover and financial compromise. I do not want my relationship with U.S. financial institutions to be negatively impacted or tarnished due to circumstances involving confirmed fraud and unauthorized activity. I have made attempts to resolve this matter directly with PayPal, but the issue remains unresolved. I respectfully request that PayPal acknowledge this case as a confirmed account takeover involving a compromised linked bank account, remove the negative balance from my account in full, and confirm that I bear no financial liability for these unauthorized transactions. This matter represents a clear case of unauthorized access and fraud affecting both my PayPal account and its linked bank account, already validated by XXXX, and I request prompt resolution.

Company response to consumer: Closed with explanation