Consumer complaint received 2024-12-27 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: NC

Complaint narrative:
I am filing this formal complaint against PayPal Holdings , Inc., highlighting their refusal to allow me to disconnect my linked financial accounts ( bank accounts, debit cards, and credit cards ) and their failure to provide a transparent explanation for permanently deactivating my account. These actions raise serious concerns under federal and North Carolina state laws governing consumer protection, financial privacy, and electronic fund transfers.

Summary of Current Issues Refusal to Disconnect Financial Accounts : Despite multiple requests, PayPal is refusing to allow me to disconnect my linked bank accounts, credit cards, and debit cards. This creates significant privacy and security risks and violates my right to control access to my financial instruments.

Lack of Explanation for Permanent Deactivation : PayPal permanently deactivated my account without providing any specific or actionable explanation, despite multiple requests for clarity. 

Ongoing Risk to Financial Security : By retaining access to my financial instruments, PayPal exposes me to potential unauthorized transactions and data misuse.

Federal Laws Violated 1. Electronic Fund Transfer Act ( EFTA ) 15 U.S.C. 1693 et seq.

PayPals refusal to disconnect my financial accounts violates the EFTA 's requirements for transparency and consumer control over electronic transfers : 1693f : Requires error resolution and provision of a written explanation for account actions.

1693c : Mandates disclosure of terms governing electronic fund transfers.

2. Federal Trade Commission Act ( FTC Act ) 15 U.S.C. 45 Retaining access to my financial accounts without consent constitutes unfair and deceptive practices : Unfair : Creates unnecessary financial risk and harm to the consumer. 
Deceptive : Refuses to disclose actionable reasons for account deactivation, preventing informed decision-making. 

North Carolina State Laws Violated 1. North Carolina Unfair and Deceptive Trade Practices Act ( XXXX ) XXXX XXXX XXXX. XXXX PayPals refusal to disconnect financial accounts and lack of transparency in account deactivation are unfair and deceptive acts under XXXX. 

XXXX. North Carolina Identity Theft Protection XXXX XXXX XXXX XXXX. XXXX et seq. 

By retaining access to my financial instruments, PayPal increases my risk of identity theft and fails to safeguard my financial data, violating 75-63.

3. Breach of Fiduciary Duty As a financial service provider, PayPal has a fiduciary duty to act in good faith and exercise due care. Their refusal to disconnect my financial accounts violates this duty. 

Relevant Case Law Federal Cases Consumer Financial Protection Bureau v. PayPal , Inc. ( XXXX ) : XXXX was fined {$25.00} XXXX for deceptive practices, including failing to provide adequate information about its practices and account actions. 

In re PayPal Account XXXX XXXX, XXXX XXXX XXXX. XXXX XXXX ( XXXX XXXX. XXXX ) : Established that withholding information about account limitations violates consumer protection laws. 

North Carolina XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  ) : Confirmed that actions causing substantial consumer harm without justification are violations of the UDTPA. 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  : Held that financial institutions owe a fiduciary duty to customers, including acting in good faith. 

Relief Requested Immediate Action : Require PayPal to disconnect all linked financial accounts upon my request.

Demand PayPal provide a detailed and transparent explanation for the permanent deactivation of my account.

Investigation : Launch a formal investigation into PayPals practices to determine compliance with federal and state consumer protection laws. 

Compensation : Seek damages for emotional distress and the ongoing risk to my financial security. 

Regulatory Oversight : Enforce stricter oversight measures to prevent PayPal from engaging in similar practices in the future.

Supporting Documentation Account History : Long-standing account with no disputes or compliance issues.

Correspondence Records : Requests to disconnect accounts and lack of responses from PayPal.

Timeline of Events : Documentation of requests and PayPals refusal to comply.

PayPals refusal to disconnect my financial accounts and their failure to provide an explanation for account deactivation violate both federal and North Carolina state laws. These actions create unnecessary risk and harm and undermine my consumer rights. I urge your office to act decisively to hold PayPal accountable and ensure compliance with applicable laws.

Company response to consumer: Closed with explanation