Consumer complaint received 2025-12-10 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Paypal Holdings, Inc
State: WV

Complaint narrative:
I had an issue with a PayPal purchase, and disputed the purchase, PayPal found in favor of the seller, I had multiple messages and phone calls with PayPal where I explained to them that the transaction was fraudulent, and that by PayPal 's TOS an account can not be used for fraudulent activity, and because PayPal supported the fraudulent seller I consider PayPal to be in breach of agreement. I then asked asked PayPal to close the account and that they could recoup loses by paying themselves back from the fraudulent seller. Paypal acknowledged that I am claiming PayPal breached their terms of service, but that they would not close the account. After a BBB complaint PayPal refunded themselves. Paypal did not close the account due to an outstanding balance of less than {$5.00}. I asked them multiple times to send an account number I could pay, because I was not comfortable giving my payment information to a company that had breached an agreement with me. They refused. After awhile I got a notification in the mail that my account was XXXX  days overdue. I then called PayPal and they agreed to correct the credit report if I paid them the {$2.00}. I mailed an envelope with {$2.00} in it to the address on the envelope. 

Paypal not only did not correct the credit report but have marked it as XXXX days overdue, and left a remark on the account that it was closed by them. 

I find this to be at best an incorrect statement of fact on PayPal 's part, and at worst an attempt to deny due process to me. Remember that PayPal has acknowledged that I am claiming they violated terms of service and wished to have my account closed. 

This method has also made recourse more difficult for me, as it is more difficult to take legal action against PayPal until the misstatement on my credit report causes me harm I have no damages to ask relief from a court for. 

Paypal on the other hand, provided they deny receiving the envelope with {$2.00} which I did just throw in a mailbox with their letter inside of it, has an actionable claim they could make. They can claim I owe them {$2.00} and I can claim their actions breached our agreement, and a court could decide who is in the right. Paypal seems to have decided not to take this course of action. 

Paypal be making these statements on my credit report seems from my prospective to just be attempting to cause me harm and make it longer/more difficult to be made whole. With my only incorrect action being noting that they were supporting a fraudulent transaction. 

I believe the reason they ended up in this situation was from a seller exploiting a gap in their seller protection program. 
The tracking number did not list my address, only city and state. When I asked the post office they said that because I'm not included on the package they can't give me any information on it. But wrote an email with the tracking number, saying that it was not addressed to me. Paypal during the dispute would agree when I talked to them that it didn't have my address on the delivery info, then would find in the sellers favor. When we reached the end of the appeals process they claimed the seller gave proof of delivery, so I need to get a " XXXX '' from the post office because they won't accept an email from a government email address as proof, of course the email had already given them stated that I wasn't named or addressed on the package so they couldnt give me more information. But PayPal claimed they would not ask the seller for any further proof. To my understanding the FTC notes this as a brushing scheme. 

Further information available on request ( all information I have has my name and other personally identifying information on it )

Company response to consumer: Closed with explanation