Money transfer, virtual currency, or money service -- Trouble accessing funds in your mobile or digital wallet -- Complaint #8727042
Complaint Overview
Complaint ID: 8727042
Company: Paypal Holdings, INC
Product: Money transfer, virtual currency, or money service
Sub-Product: Mobile or digital wallet
Issue: Trouble accessing funds in your mobile or digital wallet
State: Florida
ZIP Code: 33065
Date Received: 2024-04-08T12:00:00-05:00
Date Sent to Company: 2024-04-08T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I had a high end luxury watch business, processing payments via PayPal for many years. PayPal had approved my account for over two million dollars in processing monthly. Every transaction was tied to a timepiece serial number and a tracking number for shipping. I was processing around XXXX XXXX dollars a month in transactions through PayPal every month. On XX/XX/2021 I flew to XXXX with my family. While I was in XXXX, I transacted a sale on PayPal. For whatever reason, my account was immediately frozen, together with the buyers account and suppliers account. When I contacted PayPal customer service, I was advised that the money was frozen in the account for 180 days and I would not be able to do anything in the meantime. The amount frozen was {$71000.00} - this put a complete halt on my business, as I operated with one supplier and one buyer, all through PayPal. While awaiting the 180 days to end, I did what I could do contact PayPal and get more information, but was not supplied ANY answers. I would constantly be hung up on when asking for a manager to discuss this matter. The only reason I could see was " General Account Correction '' in the description ( prior to seeing this on a XXXX download of my transactions, the site only mentioned " USER '' in the reason. ) In doing research on the matter, it seemed that the freeze was only to protect the account in the case of a Chargeback, which had never once occurred on my account. Around 80 days in to the freeze, PayPal seized all the funds in my account. This includes my personal savings, operating cash and cash to pay my supplier, who I still owe. When finally getting an answer from PayPal as per the reason, I was led to understand that a transaction of XXXX or so dollars for a XXXX was the reason for the shut down. I clarified that the XXXX charge for the watch was for polishing and servicing the watch, not the price for the watch itself, and that there was no need to assume I was selling replicas or fakes, especially with the account history and reputation. The client and supplier can both provide proof of this, as the timepieces themselves came from XXXX. This has happened to many accounts in the high-end luxury watch industry. For PayPal to seize the funds and keep them constitutes nothing less than theft. I had to shut down my entire business due to this issue. Please have PayPal return the funds. Thank you
Frequently Asked Questions
What is Complaint #8727042 about?
Complaint #8727042 was filed against Paypal Holdings, INC regarding Money transfer, virtual currency, or money service specifically about Trouble accessing funds in your mobile or digital wallet. It was received by the CFPB on 2024-04-08T12:00:00-05:00.
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.