Not upheld: buyer protection claim refusal / account eligibility complaint against PayPal UK Ltd
Financial Ombudsman decision DRN-6203486 of 2026-04-15T00:00:00+00:00. buyer protection claim refusal / account eligibility complaint against PayPal UK Ltd. Outcome: Not upheld.
Decision detail
| Reference | DRN-6203486 |
|---|---|
| Decision date | 2026-04-15T00:00:00+00:00 |
| Firm | PayPal UK Ltd |
| Product | payment services / buyer protection |
| Claim type | buyer protection claim refusal / account eligibility |
| Outcome | Not upheld |
| Remedy | None. Complaint not upheld. No refund or reconsideration ordered. |
Summary
Miss X complained that PayPal refused to refund two buyer protection claims. PayPal declined the claims on two grounds: Miss X's account was not in good standing due to an excessive dispute rate (she had received a warning email in October 2018), and the sellers successfully defended the claims. The ombudsman found PayPal acted fairly in managing risk on its platform and found the sellers' evidence more credible than Miss X's assertions that she returned the items. The complaint was not upheld, though Miss X retains statutory rights against the retailers.
The Ombudsman's reasoning
PayPal's buyer protection is optional and PayPal is entitled to manage risk on its platform. Miss X received clear notice in October 2018 that her account might be limited due to excessive disputes. The ombudsman found Miss X's dispute rate created a legitimate risk to PayPal. On the merits, the sellers' evidence (item not sold by A, weight discrepancy with F) was more convincing than Miss X's claims that she returned the items. Miss X has statutory rights against the retailers themselves, not PayPal.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| PayPal UK Ltd, all decisions | 238 | 18% |
Source
Read the original decision on the Financial Ombudsman Service website