Consumer complaint received 2025-11-02 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Trouble accessing funds in your mobile or digital wallet — 
Company: Kiva Microfunds
State: NY

Complaint narrative:
My name is XXXX XXXX. I am a small business owner and co-founder of a women-led food venture in XXXX, NY. My daughter and I have been working tirelessly to open a modest restaurant with our own resources and through multiple loan applications. After being denied credit by several banks, we turned to Kiva a platform that promotes access to community-based microloans for underserved entrepreneurs.

Kiva advertised the opportunity to receive up to {$15000.00} in funding. After a review process, we were approved for a {$6500.00} loan on the condition that we first raise a portion of the loan ourselves from friends and supporters. Their public documentation stated that we would need between XXXX and XXXX individual contributions to qualify. However, once our campaign launched, we were told we must get exactly XXXX contributors no fewer regardless of how much was raised. This number was final and non-negotiable. 

Despite this unexpected change, we complied. We promoted the loan link on social media, reached out to our network, and explained the situation clearly and constructively. In total, XXXX people contributed approximately {$550.00}. 

Then we were told that, because we didnt reach XXXX contributors, we would not receive the loan and that all donations would be refunded. 

But this never happened.It has now been more than XXXX weeks since the XXXX XXXX XXXX ended, and none of the contributors have received their money back. 

We attempted to resolve the issue politely and constructively by writing to Kiva support and reviewing all guidance carefully. However, the situation remains unresolved, and Kiva has failed to provide any public or private communication clarifying : That the loan campaign failed to fund. 

That refunds are being processed. 

That the funds are still being held. 

Contributors are left confused and increasingly concerned unsure whether their money was returned or sent to us. As a result, our personal and professional reputations are now at risk, despite the fact that we never received a single dollar from this campaign. 

This is distressing, unethical, and fundamentally wrong. 

For example : XXXX supporter contributed {$120.00}, but has no XXXX account, and can not retrieve the funds. 

Another contributor is a retired senior on a fixed income, who donated {$50.00} despite no experience with digital platforms. 

Several others donated {$2500.00} and are unsure how to request refunds or whether the platform is even secure. 

My daughter, XXXX, received an email from Kiva with vague instructions to retrieve the money. She followed every step and attempted to withdraw the funds to her XXXX account but nothing arrived. This demonstrates that even contributors who follow directions carefully may never receive their funds. 

As of today : The loan was not funded. 

The donors were not refunded. 

There has been no transparency, no apology, and no resolution. 

We ask for : An immediate investigation into what happened to these funds. 

A clear explanation of the refund process and why it has failed. 

A public acknowledgment that the loan was not issued and no funds were transferred to us. 

Clarification of whether Kivas actions are compliant with consumer protection and crowdfunding regulations.

Accountability for the harm caused to our reputation, and to the trust of our friends and community.

We believe we were misled. And we believe Kiva failed in its responsibility not only to lenders and donors, but to the entrepreneurs it claims to serve. 

Attached you will find : A list of contributors and their donation amounts Confirmation that no loan funds were received A screenshot of the refund instructions email from Kiva We respectfully ask for your support and guidance in resolving this matter.We are submitting this letter as a formal complaint regarding Kiva, a U.S.-based lending platform that solicits public funds under the premise of supporting small businesses. 

Despite successfully reaching the required number of contributors during our loan campaign, we never received the funds. Contributors were later informed that their money had not been disbursed, and instead were encouraged by Kiva to re-lend it to other borrowers.

We believe that Kivas current model raises serious legal and ethical concerns. 
After our campaign ended, Kiva informed contributors that their funds would not be returned automatically, but instead encouraged them to support other borrowers. 
In other words, instead of issuing refunds, Kiva retains these funds and keeps them circulating within their internal system. 

Several of our supporters including retired individuals and people without XXXX accounts have attempted to retrieve their money and were unable to do so. We, the borrowers, never received a cent. The money simply disappeared into Kivas closed system.We believe this is a pattern of financial misconduct, where donor funds are withheld from both lenders and borrowers, raising serious questions of transparency and legality. 

Where is the money? 
Who is profiting from this cycle of collection and retention? 

In our opinion, this behavior resembles a predatory financial scheme, and potentially constitutes criminal misuse of public contributions, hidden behind the language of social lending. 

We are formally requesting an investigation by : The Consumer Financial Protection Bureau ( CFPB ) The Federal Trade Commission ( FTC ) The New York State Attorney Generals Office Consumer Frauds Bureau We will also be sharing this letter with relevant press contacts, community leaders, and other borrowers affected by similar behavior.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation