Product: Money transfer, virtual currency, or money service

On XX/XX/2020, I scheduled a payment through Venmo ( Paypal ) to user " XXXX XXXX ''. The payment amount was {$160.00}, and the transaction ID was XXXX. The payment was to be drawn on my checking account ( NOT a debit card, but the actual checking account ). It immediately became apparent to me that this person was scamming me, so I contacted Venmo to cancel the transaction and then I contacted my bank to stop payment. My bank successfully stopped the payment. However, I received an email from Venmo on Tuesday, XX/XX/2020 stating : " The following transaction could not be funded by your XXXX XXXX XXXX account ending in XXXX. {$160.00} to XXXX XXXX XX/XX/XXXX XXXX and shipping. Reason from your bank : " Payment on this item has been stopped ''. Don't worry, we covered you and XXXX XXXX has the funds. However you now owe Venmo {$160.00}. Your account has been frozen ... .. 

I have NEVER applied for credit with Venmo, and I NEVER gave my consent for them to " cover '' me if my payment method fails. I am being advised that they will pursue collections against me if I do not pay, despite the fact that I didn't apply for any form of credit with them, intentionally stopped the payment AND notified them that the transaction was fraudulent and shouldn't be completed. 

Instead of them trying to collect from XXXX the funds he received and was not intended to receive, they instead want to punish me and reward a criminal. Keep in mind, THEY GAVE HIM MONEY ON MY BEHALF AFTER I REPORTED TO THEM THAT HE WAS SCAMMING ME. They intentionally ignored my notification and gave money to him anyhow, even though I was able to cancel it at my bank. 

Upon scouring the User Agreement offered by Venmo, it states this with regard to failed transactions : " Bank account transfers When you use your bank account as a payment method, you are allowing us to initiate a transfer from your bank account. For these transactions, we will make electronic transfers from your bank account in the amount you authorize. You authorize us to try this transfer again if the initial transfer is rejected by your bank for any reason. '' As you can clearly see, it states they will try the transfer again, it DOES NOT state that they will pay it for me and bill me later. How can any consumer derive from this that they are going to pay something for you and collect it later? It ONLY states they will TRY THE TRANSFER AGAIN. 

It is absolutely deceptive and misleading to fail to inform a consumer that Venmo may make payments on your behalf, essentially forming a line of credit for which you did not apply or agree to receive. I expect Venmo to follow their reversal procedures and collect the unauthorized funds from the person THEY chose to give them to. 

Further, I reported to Venmo that this user was clearly scamming others, as evidenced by commentary made on public transactions with this user, yet Venmo has taken no action. 

Lastly, I repeatedly contacted Venmo about this issue and I just kept receiving responses that did not at all address my questions or concerns. They have made it IMPOSSIBLE for consumers to protect themselves and to avoid harm. If a consumer has identified a fraudulent situation, they should be HELPING THE CONSUMER, NOT THE CRIMINAL, yet, their deliberate acts to ignore requests for help, communications about criminal activity, and actually want to collect funds from victims instead of scammers suggest that they have an interest in perpetuating fraud and scams against innocent consumers. Why on earth would they decide to try to collect money they gave to a criminal from me, instead of going to the recipient of the money and demand he/she repay it? Right there should tell you everything you need to know about their morals, ethics, and agenda.