Consumer complaint received 2021-04-08
Company: Paypal Holdings, Inc
State: GA
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Fraud or scam

Complaint:
This new complaint is related to the improper closure of PayPal complaint XXXX. PayPal 's response was that the complaint was a duplicate of Venmo complaint XXXX and the case was closed without resolution. 
The fact is that we are the victims of a fraudulent activity from BOTH Venmo and PayPal and thus opened two separate complaints. Please see either of the complaints above for details of the crime committed. In addition, I have attached the written testimony detailing the crime as well as copy of the police investigation that has been opened. Venmo resolved the issue by restoring the {$900.00} that was fraudulently taken from us back into our account. The communication below from Venmo ( written via the parent company PayPal ) explains this decision. We expect the same resolution for the {$920.00} that was fraudulently taken for us via PayPal. Again, this was not a duplicate complaint. Rather, neither Venmo nor PayPal had the proper protections in place to protect their consumers from criminal activity. While we are pleased with Venmos resolution in the matter, we expect the same action of PayPal, especially since PayPal is the parent company of Venmo. 

XXXX ( Venmo ) XX/XX/XXXX, XXXX XXXX  CDT XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX, GA XXXX XXXX : Consumer Financial Protection Bureau Complaint No : XXXX Dear XXXX XXXX, I am writing on behalf of PayPal in response to a complaint ( Complaint ) to the Consumer Financial Protection Bureau filed on your behalf regarding PayPals Venmo product.

The Complaint is regarding a payment sent from your Venmo account that was reported to be part of a scam. The Complainant requested a refund for the payment sent. 

Description of Relief On XX/XX/XXXX, Venmo issued a credit in the amount of {$900.00} to your Venmo account balance. 

Response On XX/XX/XXXX, you created a Venmo account ( " Account '' ) at which time you agreed to Venmo 's user agreement ( " User Agreement '' ). On XX/XX/XXXX, you provided your XXXX XXXX XXXX XXXX ( Bank Account ) information to Venmo to be used as a funding source. 

On XX/XX/XXXX, you sent a payment in the amount of {$900.00} ( Payment ) to XXXX XXXX  ( Recipient ) using your Bank Account. On that same date, you contacted Venmo support and stated you were the victim of a scam and requested a refund for the Payment.

Venmo advised that they were unable to reverse the Payment and advised you to work with the Recipient for further resolution. Venmos User Agreement states, Venmo should only be used to transact with people you know and trust. Do not use Venmo to transact with people you dont know Only qualifying payments made to authorized merchants. business profiles, or using your Venmo debit card will be eligible for the Venmo purchase protection program. This program does not apply to any other transaction conducted using Venmo.

On XX/XX/XXXX, Venmo received notification from your bank that our request for funds was denied as a stop payment was placed on the Payment. As a result, Venmo was obligated to return the funds to your Bank Account. In addition, your Account became indebted {$900.00} as Venmo previously paid your Recipient. Venmo sent you notice of the failed bank transfer and the outstanding amount owed to Venmo via email that same day.

Upon receipt of the Complaint mentioned above, a secondary review of your Account was completed. On XX/XX/XXXX, a credit in the amount of {$900.00} was issued to your Account. Your Account currently has a {$58.00} positive balance. 

Explanation of Closure PayPal acted in good faith and in accordance with the User Agreement when processing your Payment. As stated above, a credit of {$900.00} was issued to your Account. As the Payment has been credited, Venmo considers this matter resolved.

We offer our sincerest apologies for any difficulties you may have encountered while using our services. Please feel free to contact PayPal 's Office of Executive Escalations at XXXX if you have any questions or concerns or if we can be of further assistance. 

Respectfully, XXXX XXXX. 
Executive Escalations PayPal , Inc .

Company response to consumer: Closed with monetary relief