Consumer complaint received 2023-10-19
Company: Block, Inc.
State: VA
Product: Credit card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Problem with balance transfer

Complaint:
On XX/XX/2023, I created an account with Square Inc to handle payment for a client 's local tour in the XXXX. However, Square deactivated my account the same day and informed me that they would withhold the funds, citing sections 12 and 13 of their Terms and Conditions. The payment of {$3500.00} made by my client was received by Square, and I promptly requested that they release the funds so my client could proceed with their travel plans. Unfortunately, Square refused to release the payment, citing the same sections of their Terms and Conditions, and stating that they would hold the funds for 90 days, until XX/XX/2023. 

On XX/XX/2023, I made another request to Square, asking them to release the funds as a gesture of goodwill towards my client. Once again, Square declined to release the funds, citing sections 12 and 13 of their Terms and Conditions. 

Feeling the need to take further action, on XX/XX/2023, I filed a complaint to the XXXX XXXX XXXX ( XXXX  ) to assist my client in recovering the funds. After 14 days of mediation, the XXXX  closed the case with the result that states, Square had responded to the complaint, but the consumer remained dissatisfied. 

On XX/XX/2023, I completed the necessary steps to link my account from Square to my bank account for the release of the {$3500.00} funds with anticipation that the funds would be released. 

On XX/XX/2023, I reached out to Square again to inquire about the status of releasing the fund. Their response indicated that they were still unable to process the release, citing the relevant sections of their Terms and Conditions. 

On XX/XX/2023, my lawyer suggested that I file a complaint with Consumer Finance to seek resolution for this issue. 

On XX/XX/2023, I emailed Square to ask when they would release the {$3500.00} because its past the stipulated extension of 120 days. Their response time is 24-48 hours. No response to date has been received. 

Today, XXXX XX/XX/2023, I tried to call Square for status. After providing the required customer code over the phone, the recording states that they could not help me because my account was deactivated. I took this action to demonstrate that I exhausted my communication with Square before filing this complaint. 

I would like to draw your attention that my client, along with their family ( a total of 9 individuals ), proceeded with their tour using the credit card of the client 's father so that their planned vacation would not be cancelled. We were able to utilize another payment platform without any issues, and my client expressed satisfaction with the tour service we provided. I am perplexed why Square would still not release the money when the travel of my client was completed in XX/XX/, and no violation of any kind was committed. No company should ever withhold the money of consumers like you and I without logical justification. Their action is nothing, but an abuse of power imposed over small business like mine. I urge the Finance Department take a hard look at this practice and act where they see fit. It infringes on small business capability to serve their client with the funds that were entrusted to them and losing a customer because of Squares illogical action of not releasing the funds. 

I express my gratitude to the Finance Department for their assistance in resolving this matter. 

I can provide the email exchanges I had with Square if requested. 

Thank you, XXXX XXXX

Company response to consumer: Closed with explanation