Consumer complaint received 2026-05-28 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Managing, opening, or closing your mobile wallet account — 
Company: Paypal Holdings, Inc
State: AK

Complaint narrative:
I am submitting this complaint against PayPal regarding what appears to be an arbitrary and unsupported permanent limitation of my PayPal account, followed by PayPals refusal to allow access to any available funds for up to 180 days. PayPal permanently shut down my account without providing a clear reason, specific allegation, evidence, transaction-level explanation, or meaningful opportunity to respond. I was not given a specific policy provision that I allegedly violated, nor was I provided proof of fraud, chargebacks, buyer claims, reversals, regulatory holds, court orders, or any other concrete basis justifying a permanent account closure or prolonged withholding of funds. PayPal has now stated that if there is money in my account, I can not request or access those funds for 180 days. I understand that payment processors may have limited authority to hold funds when there are actual pending disputes, chargebacks, reversals, fraud concerns, or legal obligations. However, PayPal has not identified any such specific issue in my case. A generalized or unexplained risk claim should not be enough to deprive a consumer or business account holder of access to their funds without a transparent factual basis. I am requesting that your office review PayPals conduct for potential unfair, deceptive, arbitrary, or abusive business practices, including : Permanently limiting or terminating my account without a specific explanation ; Refusing to identify the exact policy or conduct allegedly violated ; Withholding funds for up to 180 days without identifying any specific pending dispute, chargeback, reversal, legal hold, or regulatory basis ; Failing to provide a meaningful appeal or review process ; Using vague risk-management language to avoid accountability ; and Potentially applying account limitations in a manner inconsistent with fair consumer financial practices. I am requesting the following resolution : PayPal should provide a written explanation identifying the specific reason my account was permanently limited ; PayPal should identify the exact policy provision allegedly violated ; PayPal should identify any transaction, claim, chargeback, reversal, legal order, regulatory hold, or other specific basis supporting the 180-day hold ; PayPal should immediately release any funds that are not tied to a specific, documented dispute or lawful hold ; PayPal should confirm the exact balance being withheld ; PayPal should confirm that no funds will be forfeited, offset, deducted, or retained after the 180-day period without an itemized explanation ; and PayPal should preserve all internal records, account notes, risk-review records, account limitation records, communications, and transaction review documents related to this decision. I am not asking the agency to act as my private attorney. I am asking for regulatory review, complaint routing, and any available consumer protection assistance because PayPals actions appear unsupported, unexplained, and potentially unfair. Attached or available upon request are copies of PayPals account limitation notices, emails, screenshots, transaction history, account balance information, and any communications I have received from PayPal. .

Company response to consumer: Closed with explanation