Consumer complaint received 2020-12-01
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Confusing or misleading advertising or marketing — 
Company: Paypal Holdings, Inc (CA)

My name is XXXX XXXX. Having been an existing Venmo account holder in good standing, I decided to take advantage of Venmo 's direct deposit feature that it is advertised in the app. The email associated with my Venmo account is : XXXX. I was anticipating my unemployment benefits from the State of XX/XX/XXXX. I had been waiting months for a large lump-sum unemployment benefit payment which included back-pay dating back to mid-XXXX  of this year. The total amount I was expecting was {$16000.00}. I was relieved to see that my Venmo balance had been credited in the amount of {$16000.00}. When I attempted to transfer my funds to my external bank account I learned that my account had been frozen and that Venmo -- a subsidiary of Paypal , Inc., -- was not going to allow me access to my long anticipated funds. Paypal , Inc. sent a letter to my address stating that it believed my direct deposit payments were fraudulent since I resided in XX/XX/XXXX and the Unemployment Benefits I was receiving were fromXX/XX/XXXX It is a well-known fact that it's not up to Paypal , Inc. to determine an individual 's eligibility to receive unemployment insurance benefits in the State of XX/XX/XXXX. My business with XX/XX/XXXX Department of Employment Security ( XXXXDES ) does not concern Paypal , Inc. in any way -- period.XX/XX/XXXXDES is already aware that my mailing address is in XX/XX/XXXX and that I now reside here. Since Paypal , Inc. has brought up the issue of myXX/XX/XXXX residency and used it as its reason for flagging my unemployment direct deposit payment as fraudulent, I'm glad to address this. From the beginning of this year to the summer of this year, I temporarily resided in XXXX. I earned money through XXXX as a XXXX  XXXX. I also drove for both XXXX and XXXX to supplement my income. XXXX  for XXXX  XXXX  are classified as XXXX  XXXX. About mid-XXXX  of this year, the entire country went on lockdown due to the COVID-19 pandemic and many were forced to stop working. The XX/XX/XXXX industry, which includes XX/XX/XXXX such as myself, was hit the hardest and remained shut down the longest. In response, the federal government passed the CARES act which included PUA ( Pandemic Unemployment Assistance ) benefits to extend those that weren't eligible for regular unemployment benefits in their respective state. PUA benefits were specifically designed to be a lifeline for XXXX  individuals and XXXX  XXXX  -- which is the exact class of workers that I belong to. Although I now reside in XX/XX/XXXX, I am required to apply for PUA benefits in the state where I was performing work at the time when the COVID-19 pandemic triggered the national lockdown -- which was XXXX. In fact, for me to have filed in any other state beside XXXX  would be considered fraud. Thus, my PUA claim is bona fide and any payments made to me by XX/XX/XXXXDES are both legitimate and legal in every which way! The funds I received were not fraudulent and I am entitled to them immediately. TheXX/XX/XXXXDES conducts their own review of each PUA claim carefully examining each for potential signs of fraud. The State of XX/XX/XXXX found my PUA claim to be genuine, filed in good faith and issued payments in the amount of {$16000.00}. The two payments received into my Venmo account were of such high amounts because they included back-pay from XXXX with an added {$600.00} per week pursuant to the CARES Act. Although Paypal , Inc. may have acted in what it believed to be in good-faith at the time when it froze my account, it has now come to light that such adverse action was made in error. I am rightfully entitled to the {$16000.00} that PayPal Inc. is currently holding over. I have endured extreme financial hardship due to the COVID-19 pandemic putting me out of work. I have suffered even greater hardship at the hands of Paypal , Inc. for its improper adverse action against my Venmo account. Paypal , Inc. has stated that it will make my funds available to me on XX/XX/2021. However, I can not continue to suffer this ongoing extreme financial hardship for another 6 months. I shouldn't have to wait any longer for my Unemployment Benefits. The State of XXXX  has found my claim to be legitimate and Paypal , Inc. 's actions are beyond the scope of its business practices.