Consumer complaint received 2025-11-29 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: CO

Complaint narrative:
To Whom It May Concern, My name is XXXX XXXX, and I am a XXXX  XXXX in XXXX  XXXX, Colorado. I am filing a formal complaint against PayPal XXXX XXXX regarding a significant mishandling of a dispute involving funds paid for merchandise that was never delivered. 

I operate multiple retail businesses that rely on PayPal for purchasing inventory and conducting customer transactions. I have maintained a long, clean, and consistent business relationship with PayPal for many years. 



Summary of the Issue In XXXX, I placed an order with a seller in XXXX for a shipment of crystals used for retail sale in my store. I made XXXX separate payments to this seller through PayPal : {$2100.00} USD {$3100.00} USD Both payments were for the same order from the same seller. 

The seller did not ship the merchandise I paid for. Instead, he sent a small, low-value package weighing only a few ounces, despite the fact that the actual order should have been approximately XXXX pounds of XXXX material. The seller even admitted to me through messages that he had not sent out the packages and that the real shipment was still sitting on his desk. 

I filed disputes with PayPal for both transactions. 
PayPal approved the {$2100.00} dispute. 
PayPal denied the {$3100.00} dispute, allowing the scammer to keep the funds. 

This denial occurred despite both transactions involving the same seller, the same fraudulent behavior, the same evidence, and the same violation of XXXX XXXX XXXX policies. 



Actions I Have Taken I have spent weeks attempting to resolve this directly with PayPal : I contacted PayPal customer support multiple times. 
I submitted all evidence, including : Photos of the package Tracking weight discrepancies Screenshots of the seller admitting the shipment was incorrect Proof of the original order details All communication logs I also requested that the closed claim be corrected and re-opened under the proper dispute category. 

Despite my efforts, PayPal continues to uphold their incorrect determination and refuses to refund the XXXX XXXXXXXX though the circumstances are identical to the previously approved {$2100.00} transaction. 



Financial Harm and Policy Violations PayPal is responsible for honoring its XXXX XXXX XXXX, which states that buyers are covered when an item is : Not as described Significantly different than advertised Missing items Fraudulently misrepresented Not delivered at all All of these conditions apply. 

By failing to uphold their own policies consistently, PayPal has caused me : Financial loss of {$3100.00} Loss of inventory critical to my business Hours of time spent attempting to correct their errors Emotional distress and business disruption It is extremely concerning that PayPal recognized XXXX part of the fraud but continues to ignore the larger payment without valid justification. 



What I Am Requesting From the CFPB I respectfully request the CFPB to investigate the following : XXXX. Why PayPal approved the {$2100.00} dispute but denied the {$3100.00} dispute despite identical evidence and fraudulent behavior. 
XXXX. Why PayPal ignored clear documentation showing the seller engaged in intentional fraud. 
XXXX. Why PayPal refused to re-open or properly classify the second dispute when provided with all required information. 
XXXX. Why PayPal continues to allow a known scammer to keep funds after the fraudulent nature of the shipment was proven. 

I am requesting that PayPal be required to return the {$3100.00} USD that was wrongfully withheld and mishandled. 



Conclusion I have acted in full compliance with XXXX policies. I have provided overwhelming proof of fraud. As a long-time PayPal business XXXX, I rely on fair and consistent enforcement of their XXXX XXXX guidelines. 

XXXX refusal to resolve this issue has caused measurable financial harm. I am asking for CFPB assistance to correct what has become a deeply unfair and unjust situation. 

Thank you for your time and attention to this matter. 
XXXX Sincerely, XXXX XXXX XXXX  XXXX, Colorado XXXX XXXX

Company response to consumer: Closed with explanation