Consumer complaint received 2026-04-30 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: Paypal Holdings, Inc
State: NY

Complaint narrative:
Complaint : I used PayPal Pay-in-4 for a {$900.00} purchase and completed all XXXX installment payments in full. Within the first 30 days of ownership, the product proved defective and unusable. Beginning on XX/XX/year>, I initiated contact with the merchant and sent at least seven separate emails within the 30-day return and warranty period documenting the issue in detail. The defect progressed from a tail light failure to a complete system malfunction, leaving the bike stuck in brake mode and inoperable. I provided detailed diagnostics, including testing of wiring, brake sensors, and system behavior, which indicated a controller failurenot user error. Despite this, the merchant failed to provide a meaningful resolution beyond generic troubleshooting responses and did not honor warranty or return obligations. I escalated the matter through PayPal and opened a dispute within the required timeframe. PayPal did not resolve the dispute. I subsequently filed an appeal on XX/XX/year>. During this process, PayPal customer service explicitly advised me to complete all Pay-in-4 payments and then dispute the charge through my credit card issuer, stating that PayPal and XXXX XXXX would work together to resolve the matter. I followed these instructions in good faith. XXXX XXXX has since reversed multiple related charges and resolved those disputes in my favor. The remaining transaction has been under review. Despite the above, PayPal is now incorrectly treating this account as a delinquent Pay-in-4 loan and has initiated collection activity. I am receiving repeated emails and calls stating that this is an attempt to collect a debt. This classification is inaccurate and misleading for the following reasons : The Pay-in-4 loan was paid in full prior to any chargeback The current balance exists solely due to a chargeback tied to defective goods and failed merchant resolution I followed PayPals explicit instructions in pursuing the chargeback The matter has been actively disputed and appealed within PayPal The underlying transaction is not resolved and is still under dispute Additionally, PayPal representatives have acknowledged that payments were made and advised me to disregard collection communications, which directly contradicts the ongoing collection activity. This is not a delinquent debt. It is a disputed transaction arising from defective goods and failure of the merchant and PayPal to resolve the issue appropriately. I am requesting that PayPal : Immediately cease all collection activity, including emails and calls Reclassify the account as disputed rather than delinquent Confirm that no negative credit reporting has occurred or will occur Provide written confirmation that this matter will not impact my credit profile Correct any internal reporting related to this account I have full documentation supporting this complaint, including payment history, merchant communications, diagnostic analysis, PayPal dispute records, and PayPal customer service instructions. Desired Resolution : Correct account classification, stop all collection activity, and confirm no negative credit reporting.

Company response to consumer: Closed with explanation