Consumer complaint received 2025-05-23 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: NE

Complaint narrative:
Comprehensive CFPB Complaint Against PayPal Deceptive Denial of Refund Claim Complainant Background : I am a mother of three from Nebraska, currently not working, who made a purchase of a digital product using PayPal. I trusted PayPals Purchase Protection to safeguard consumers from receiving items that are faulty or not as described. 



XXXX XXXX : On XX/XX/XXXX, I sent a payment of {$180.00} to a seller through PayPal. 
The next day, I filed a Purchase Protection case because the digital product was significantly not as described and was largely non-functional.

I escalated this dispute multiple times through the PayPal Resolution Center, providing detailed evidence ( over 20 pieces ) that the product did not work as advertised.

Despite this, PayPal denied my claim repeatedly, citing only expectation issues and refusing to issue a refund. 
PayPal missed their own deadline of XX/XX/XXXX, for resolving this claim, prolonging the issue over XXXX months. 



XXXX Official Response : On XX/XX/XXXX, you created a PayPal account ( Account ) at which time you agreed to PayPals User Agreement. On XX/XX/XXXX, you provided your XXXX XXXX XXXX XXXX XXXX  account ( Bank Account ) information to PayPal to be used as a funding source and for withdrawals. On XX/XX/XXXX, you sent a payment from your Account in the amount of {$180.00} ( Payment ) to the seller ( Seller ), which was funded using your Bank Account. On XX/XX/XXXX, you initiated a PayPal Purchase Protection case for the Payment, stating what you received was significantly different than what was described. Specifically, you stated the digital product cost too much for the little bit of it you could use. At that time, the Seller was sent notifications via email and the Resolution Center advising them you had disputed the Payment and asking for them to work directly with you toward a resolution. On XX/XX/XXXX, you escalated this dispute to a claim ( Claim ), allowing PayPal to make a decision. PayPal sent you an email confirming the dispute had been escalated that same day. On XX/XX/XXXX, PayPal requested that you provide details as to the extent of the damage to the item, or clearly explain how your item significantly differs from the item advertised to support your claim. You were also informed if you did not respond to our inquiry, the Claim would be decided in the Sellers favor and no refund would be issued. On XX/XX/XXXX, the Claim was closed without refund because we found that the Seller accurately described the item in the listing. Pursuant to PayPals Purchase Protection Program, An item may not be considered Significantly Not as Described if... The item was properly described but did not meet your expectations. On XX/XX/XXXX, you appealed the decision and reopened the case. On XX/XX/XXXX, the case was denied for the previous reason as no new information was provided to support the case. On XX/XX/XXXX, a review was done on your Claim. With you stating in your Claim you did not like the presets is an expectation issue which does not fall under a Significantly Not as Described Claim. The Seller had also provided information noting a non refundable purchase before the purchase is made. Upon receipt of your Complaint, we conducted an additional review and confirmed no PayPal errors occurred when initially denying your Claim for the reasons outlined above. 



Why This Response Is Deceptive and Unfair : Misrepresentation of Evidence : I did NOT claim the issue was that I didnt like the presets or that it was merely an expectation issue. I have provided extensive documented proof that the product was non-functional and did not work as advertised, violating PayPals own protection policy.

Policy Contradiction : PayPals policies clearly state that a non-functional product is grounds for a refund, yet they deny my claim citing expectation instead of the actual, provable faults.

Changing Terms & Unclear Policies : PayPals user agreement and Purchase Protection policies frequently change without clear communication, making it difficult to understand consumer rights. This creates an unfair advantage for PayPal and the seller. 
Deadline Missed : PayPal failed to meet their own deadline for resolution ( XX/XX/XXXX ), keeping my funds and escalating financial and emotional stress. 



Legal Context : Nebraska Consumer Protection Act ( Neb. Rev. Stat. 59-1601 et seq. ) : Prohibits deceptive and unfair business practices. PayPals repeated denial despite evidence may be considered deceptive conduct.

Nebraska Uniform Commercial Code ( Neb. Rev. Stat. 2-314 ) : Requires goods ( including digital goods ) to be fit for their ordinary purpose and as described.

Federal Trade Commission Act : Prohibits unfair and deceptive business acts or practices.

Additional Notes : I have connected with multiple other consumers experiencing the same issues with PayPals Purchase Protection denials for digital goods.

This is part of a systemic pattern of neglecting consumer rights and refund obligations.

Request : I demand PayPal immediately refund my {$180.00}. I will pursue legal action for the financial loss, emotional distress, and breach of consumer protection laws

Company response to consumer: Closed with explanation