Money transfer, virtual currency, or money service -- Other service problem -- Complaint #18383935
Complaint Overview
Complaint ID: 18383935
Company: Paypal Holdings, INC
Product: Money transfer, virtual currency, or money service
Sub-Product: Virtual currency
Issue: Other service problem
State: Illinois
ZIP Code: 60647
Date Received: 2025-12-30T12:00:00-05:00
Date Sent to Company: 2025-12-30T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I am filing a complaint against PayPal regarding the sudden and unexplained permanent deactivation of my long-standing personal account and the holding of potential funds for up to 120 days. I have been a PayPal customer since approximately XXXX. This is a personal account only. I do not operate a business through this account. I have not engaged in high-risk transactions, international transactions, large volume transfers, cryptocurrency, gambling, adult content, policy-restricted activity, or anything remotely suspicious. To my knowledge, I have never had chargebacks, disputes, fraud claims, or compliance issues on this account. On XX/XX/XXXX, I received a notice that my account was permanently deactivated due to unusual activity with no specifics provided and no opportunity to correct or clarify anything. The email states funds may be held for up to 120 days. When I contacted customer support, I was told I could receive no further information unless I wrote a physical letter to their legal department. I believe this is unfair, lacks transparency, and may violate consumer protection principles. A financial institution should not be allowed to permanently ban a consumer and restrict access to their financial platform without : explaining the specific reason citing the exact policy allegedly violated offering meaningful appeal or review I am requesting that PayPal : -Provide a detailed written explanation of the specific activity or policy that led to the permanent deactivation of my account. -Conduct a full manual review of my account, given it is a long-standing personal account with normal activity. -Confirm whether any funds are being held and ensure they are released as soon as legally permissible. -Reinstate my account if no legitimate compliance violation exists. This situation has created unnecessary stress, uncertainty, and disruption. I simply want transparency and fair handling. Thank you!
Frequently Asked Questions
What is Complaint #18383935 about?
Complaint #18383935 was filed against Paypal Holdings, INC regarding Money transfer, virtual currency, or money service specifically about Other service problem. It was received by the CFPB on 2025-12-30T12:00:00-05:00.
How did Paypal Holdings, INC respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Money transfer, virtual currency, or money service) and describe your issue in detail.
Can I see other complaints against Paypal Holdings, INC?
Yes, visit the Paypal Holdings, INC company profile at readthecomplaint.com/company/paypal-holdings-inc to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.