Money transfer, virtual currency, or money service -- Unauthorized transactions or other transaction problem -- Complaint #11091620
Complaint Overview
Complaint ID: 11091620
Company: Paypal Holdings, INC
Product: Money transfer, virtual currency, or money service
Sub-Product: Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem
State: North Carolina
ZIP Code: 27526
Date Received: 2024-12-09T12:00:00-05:00
Date Sent to Company: 2024-12-09T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
On XX/XX/XXXX at XXXX XXXX, I contacted Venmo about a fraudulent transaction on my account for {$500.00}. When I spoke to the customer service representative, she agreed that the transaction was fraudulent and opened a request ticket, reference number XXXX. Prior to contacting Venmo, I contacted my bank to stop the fraudulent payment at XXXX XXXX. Due to the holiday weekend, the official dispute/stop payment was not opened by my bank until XX/XX/XXXX. However, the bank was able to stop the transaction in time and I informed Venmo of that resolution. On XX/XX/XXXX, I began receiving emails from Venmo stating that my account had been frozen. They stated that since my bank would not conduct the transaction that Venmo had covered the amount for me but that my Venmo account would be frozen until the amount ( {$500.00} ) was repaid. Again, they had been alerted that this was a fraudulent payment and that the transaction would be stopped on my end but still proceeded to cover the transaction. I reached out to Venmo to see how to unfreeze my account. They requested that I file a police report and that they would work with the investigators to resolve the issue. I called and spoke to a detective at our local police department on XX/XX/XXXX. The detective informed us that because I did not lose any money ( due to the " stop payment '' ), there was no crime to file the police report on, so I would be unable to file a report. I let Venmo know what the detective told me, and Venmo responded with the same statement that I needed to file a police report ( XXXX ). When I repeated that I could not file a report and again relayed what the detective told me. They said they would not be able to help me any further because the transaction had already been completed in their system ( XXXX ). On XXXX, I received another email from Venmo saying that my account had been frozen and would remain frozen until I authorized the payment of {$500.00}. At this point, I'm getting near-daily harassment from Venmo requesting money. This seems like a communication gap between their customer service and fraud-alert system. Again, I alerted that this was a fraudulent payment and that the transaction would be stopped by my bank but Venmo still proceeded to cover the transaction.
Frequently Asked Questions
What is Complaint #11091620 about?
Complaint #11091620 was filed against Paypal Holdings, INC regarding Money transfer, virtual currency, or money service specifically about Unauthorized transactions or other transaction problem. It was received by the CFPB on 2024-12-09T12:00:00-05:00.
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.