I sent $ 1000.00 to a friend through pay pal and then I cancelled the transaction the same day since my friend did not need it.I was told by pay pal that the money was never taken out of my bank account but my bank account showed the withdrawal.
After calling PayPal several times to no avail I called my bank and they said PayPal had my money.I called PayPal and finally after being on the phone for half an hour they told me that it would take a week to show on my account and after that I could transfer it back to my bank account..It had been three weeks by then that PayPal had my money.When it showed up in my account I made the transfer and it said it would take a week for the transfer.I asked the rep if I could expedite and she said to call my bank.The bank told me what PayPal needs to do so I called PayPal and I was on the phone for 45 min and the rep said that doing a check instead would be quicker so we went ahead with that and I kept telling her that it tells me it will take two weeks,and she assured me that she would fix it and the funds will be available in a couple of days .
Then I get an email from pay pal saying that it will be a couple of weeks for me to get the check and they also charged a fee.I called PayPal and spoke to their supervisors and complaint but other than saying sorry they did nothing about it. I am having to pay late charges on my bills because I don’t have the available funds.
Source: http://www.paypalwarning.com/cancelled-paypal-transaction-turned-nightmare/