Money transfer, virtual currency, or money service -- Fraud or scam -- Complaint #7888407
Complaint Overview
Complaint ID: 7888407
Company: Paypal Holdings, INC
Product: Money transfer, virtual currency, or money service
Sub-Product: Mobile or digital wallet
Issue: Fraud or scam
State: Pennsylvania
ZIP Code: 150XX
Date Received: 2023-11-21T12:00:00-05:00
Date Sent to Company: 2023-11-21T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I received a direct deposit style debit card in the mail through Venmo that I had not applied for. My social security information has been compromised for some time now, so I immediately called Venmo to have this account/card cancelled which they happily did. They stated I was not responsible for charges. However, the problem I have is that my information is entirely frozen on all credit and banking bureaus, including XXXX. From my understanding, financial institutions such as Venmo are to request my information from XXXX, being that is is the banking record bureau, before opening a new account in my name. If they had done that, they would have seen my account was flagged and denied the fraudulent account. Clearly, they did not follow through with with responsibility. When talking to the agent, I asked why this consumer protection measure was not done. We went back and forth for several minutes, with him telling me that how was information is used is a " trade secret '' and he can not reveal trade secrets to the laymen like myself. However, I was simply asking why they had not done what they are, by law, supposed to be doing whenever a new account is requested. After several minutes of a runaround, with him admitting no fault and refusing to actually answer my questions, I simply gave up attempting to get an answer. He then said it would be escalated to a manager who would erase any charged brought onto the card. I asked if I could expect a call from said manager, with a report of what charges, if any, were made in my name. Again, I was told this was " trade secret '' information because it reveals how their company deals with fraud. Overall, it seemed like a very shady practice, and the company is not fulfilling their duty of checking credit and banking reports before opening a new account.
Frequently Asked Questions
What is Complaint #7888407 about?
Complaint #7888407 was filed against Paypal Holdings, INC regarding Money transfer, virtual currency, or money service specifically about Fraud or scam. It was received by the CFPB on 2023-11-21T12:00:00-05:00.
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.