Money transfer, virtual currency, or money service -- Confusing or missing disclosures -- Complaint #5619358
Complaint Overview
Complaint ID: 5619358
Company: Paypal Holdings, INC
Product: Money transfer, virtual currency, or money service
Sub-Product: Mobile or digital wallet
Issue: Confusing or missing disclosures
State: Massachusetts
ZIP Code: 022XX
Date Received: 2022-05-28T12:00:00-05:00
Date Sent to Company: 2022-05-28T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
The company is Venmo. They HEAVILY advertise that they now support cryptocurrencies. They only give you the option to buy and sell. You are not allowed to transfer your holdings to another wallet, on or off their platform. What does this mean you might wonder? Internalization. I speculate they are not even making a purchase with your funds that is hitting the blockchain. There is no way to actively view ANY of your crypto transactions through Venmo as is possible with trusted crypto-based companies ( typically, you can see the different confirmations of your funds being transferred on trusted sites ), which further supports this hypothesis. In classical finance, we refer to this as a " Ponzi Scheme ''. Because it's cryptocurrency, it is heavily unregulated and confusing to the average American over the age of XXXX so they get away with it. My best guess is that they collect batches of orders through their customer base, and don't actually give you a genuine crypto currency wallet, as they very clearly are advertising to unsuspecting consumers. This would mean their " transaction fee '' is also a lie, and they're just taxing their consumers because it looks normal in relation to your average crypto based transactor today. Where are my network confirmations, Venmo? Can you show me those? Prove to me that you are actually making purchases on my behalf with the timestamps, my wallet address, amounts, etc. If this is not the case, why else are you not allowed to transact further than buy and sell, and how long will it be before you grifters turn off the Buy or Sell button when the crypto bubble pops in two weeks? Oh right, you guys don't care. Whatever it takes to survive one more day, right?
Frequently Asked Questions
What is Complaint #5619358 about?
Complaint #5619358 was filed against Paypal Holdings, INC regarding Money transfer, virtual currency, or money service specifically about Confusing or missing disclosures. It was received by the CFPB on 2022-05-28T12:00:00-05:00.
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.