Consumer complaint received 2023-06-06
Company: Paypal Holdings, Inc
State: TX
Product: Checking or savings account
Sub-product: Other banking product or service
Issue: Managing an account
Sub-issue: Funds not handled or disbursed as instructed

Complaint:
XXXX ( Venmo ) XX/XX/XXXX, XXXXXXXX XXXX CDT Dear XXXX XXXX, My name is XXXX with PayPal 's Office of Executive Escalations. Your outreach regarding PayPals Venmo product was forwarded to me so that I can fully address your concerns. 

I regret the frustration and difficulty you experienced with the suspension on your Venmo account. I understand how this would be a cause for concern and I appreciate you bringing it to our attention. 

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 received a direct deposit in the amount of {$670.00} for unemployment benefits. 

In order to prevent fraud and help ensure the safety of the Venmo system, Venmo routinely reviews account activity. On XX/XX/XXXX, we carefully considered a number of factors that, when viewed together, indicated there was a high level of risk associated with your Account. Specifically, Venmo identified risk associated with the unemployment benefits you received from the state of Louisiana. 

Pursuant to the Restricted Activities section of the User Agreement, In connection with your use of our websites, your Venmo account, the Venmo services, or in the course of your interactions with us, other customers, or third parties, you must not Violate any law, statute, ordinance, or regulation ( for example, those governing financial services, consumer protections, unfair competition, anti-discrimination or false advertising. ) As such, to maintain the security of our network, Venmo suspended your Account as permitted under the Holds and Limitations section of the User Agreement. Venmo notified you of this action via email and requested that you provide your government issued photo ID to verify your identity. On that same day, you provided the requested documentation to Venmo. 

On XX/XX/XXXX, Venmo completed their review of your Account, and determined we were unable to mitigate the risk associated with your Account. As a result, Venmo decided to cease offering our services to you as permitted under the Restricted Activities section of the User Agreement. We notified you of this action through an alert prominently placed on your Account 's overview page. 

On that same date, you were also informed that your Account balance would be held for up to 180 days, at which time we would email you with information on how to access any remaining funds. 

On XX/XX/XXXX, Venmo conducted an additional review of your Account and determined that we would be unable to release the remaining balance at this time. 

Basically there was a {$670.00} unemployment check that was accidenlty depositied into this account, from my then spouse, XXXX XXXX XXXX from the state of Louisiana. I sent all documentation his and mine, social security cards, bank statements, info from unemployment, identification cards etc. 

We still have not received any of the other {$6000.00} that is in the account.

Company response to consumer: Closed with non-monetary relief