Consumer complaint received 2025-08-07 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Trouble accessing funds in your mobile or digital wallet — 
Company: Paypal Holdings, Inc
State: OH

Complaint narrative:
Initial message : Im contacting you regarding the recent and sudden deactivation of my account after receiving a transfer from my girlfriend, who was advised by your support team to send her funds to a trusted person ( me ) to withdraw them. She had transferred money from XXXX to her PayPal account and was hit with a XXXX hold when trying to withdraw it to her debit card. Your representative told her that if she trusted someone, she could send them the funds and they could complete the withdrawal for her. 

Thats exactly what she did she sent the money to me and as soon as I received it, my account was deactivated with no warning, no explanation, and no option to resolve or return the funds. 

This is unacceptable. I have never violated any terms of service. Ive only used my PayPal account to buy cryptocurrency through XXXX. No disputes, no chargebacks, no fraud nothing that would warrant this kind of extreme action. 

Your own policies say that in cases like this, if theres an issue with a payment, and the refund button isnt available, you will handle it and you hold funds for 120 days specifically for situations like this. So why is the account shut down and the money completely locked up with no path to resolution? 

This needs immediate attention. My girlfriend needs access to her money money she rightfully owns and I need my account reactivated or at the very least, a clear explanation and a way for her to be refunded. 

Im asking for a prompt review and a fast resolution.

PayPals response : Unfortunately, this decision has been finalized. I apologize for any inconveniences this may be causing but we are not able to remove the restriction or assist with withdrawing the money. You will have to allow the 120 day timeframe.

My response : Thank you for your response, but simply telling me that the decision has been finalized is not an acceptable resolution. The funds involved belong to my girlfriend, who followed instructions given directly by your own support representative.

Your decision to freeze and effectively seize these funds, while providing no way for the rightful owner to retrieve them, is unacceptable. This is causing significant financial hardship and emotional distress. It was your agents advice that led to this situation, and yet you are refusing to assist in correcting it. 
I am formally requesting the following : 1. A detailed explanation of why my account was permanently limited when no PayPal terms of service were violated.

2. Immediate escalation of this case to a senior account specialist or compliance manager who can review the facts and consider reactivating my account or releasing the funds to their rightful owner.

3. Written documentation explaining the legal and policy basis for permanently restricting both my account and access to funds that are not proceeds of fraud or unauthorized activity.

If I do not receive a satisfactory response, I will have no choice but to file complaints with the Consumer Financial Protection Bureau ( CFPB ), Better Business Bureau ( BBB ), and consider legal action, as this appears to be a case of wrongful withholding of funds based on your representatives own instructions.

I expect a prompt and thorough review of this matter.

PayPals vague response : There are not further details that we can provide to you that has not already been provided via the email advising of the permanent limitation. Due to the account being permanently limited, the account is no longer eligible to be escalated as this is a finalized decision. The policy is available here at : https : // www.paypal.com/us/legalhub/paypal/home

Company response to consumer: Closed with explanation