Consumer complaint received 2025-10-27 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: TX

Complaint narrative:
I am filing this complaint against Venmo for wrongfully freezing my account, holding {$420.00} of my legitimately earned wages for 180 days without valid justification, and permanently deactivating my account despite full compliance with all verification requests. This action has caused me severe financial hardship, including loss of employment. 

Detailed XXXX of Events XX/XX/XXXX : I opened a Venmo account solely to receive payment from my employer, a carpenter who pays all his workers through Venmo. I was reluctant to use Venmo due to negative reports but had no alternative payment option. 
XX/XX/XXXX ( XXXXXXXX XXXX  XXXX ) : Venmo suspended my account without prior warning. I received the first notice of suspension. 

XX/XX/XXXX ( XXXXXXXX XXXX XXXXXXXX ) : I immediately contacted Venmo customer service to resolve the issue. Request Number : XXXX. 
XX/XX/XXXX ( XXXX XXXX XXXXXXXX ) : Venmo froze my account again and requested a photocopy of my ID. Ticket Number : XXXX. I promptly complied with this request and provided all requested identification documents. 
XX/XX/XXXX ( XXXXXXXX XXXX XXXXXXXX ) : Venmo stated they had unfrozen my account. Ticket Number : XXXX. 

XX/XX/XXXX ( XXXXXXXX XXXX XXXXXXXX ) : I received another email claiming " unusual activity '' on my account, despite no such activity occurring... 

XX/XX/XXXX ( XXXXXXXX XXXX XXXXXXXX ) : Venmo permanently deactivated my account and informed me they are holding my {$420.00} for 180 days ( until approximately XX/XX/XXXX ). They stated " as a result your account has been permanently deactivated and we regret to inform you that we can no longer offer you Venmo service. '' Why This Action Is Unjustified Legitimate Funds : The {$420.00} in my account represents legitimate wages from my employer. My employer has NOT filed any complaint or dispute regarding these payments. 
Full Compliance : I have verified my identity by providing a government-issued ID and have updated and verified my bank account information as requested. Venmo has all necessary documentation to confirm my identity and the legitimacy of my account. 
No Explanation Provided : Venmo has cited only vague " security reasons '' and " unusual activity '' without providing any specific explanation of what policy I allegedly violated or what activity was considered unusual. 
Inconsistent Actions : Venmo repeatedly froze and unfroze my account, demonstrating their own uncertainty about whether any legitimate concern existed. 
Initial Setup Issues : Any confusion regarding bank account linking occurred during the initial setup of my account when a friend was helping me navigate the app, as I am not technologically proficient. These were honest mistakes made during legitimate account setup, not fraudulent activity. 

have retained the following documentation : Venmo 's actions have devastated my life financially. I respectfully request that the Consumer Financial Protection Bureau investigate this matter thoroughly and take appropriate action to ensure I receive my money and that other consumers are protected from similar treatment. 



Harm Suffered The freezing of my account and withholding of my earned wages has caused me : Loss of employment : I could not afford transportation to return to work, resulting in job loss. 

Inability to meet basic needs : I have no access to my legitimately earned money for food, housing, and necessities Severe financial hardship : I have been left with XXXX income and no resources Pain and suffering : The stress and anxiety caused by this situation has been immense Legal and Regulatory Concerns Violation of Electronic Fund Transfer Act ( EFTA ) : Venmo appears to be holding my funds without proper justification, potentially violating EFTA provisions regarding access to funds and error resolution procedures ( 15 U.S.C. 1693 et seq. ).

Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) : Venmo 's practice of : Freezing accounts without clear explanation Holding legitimately earned funds for 180 days without valid cause Providing inconsistent information ( unfreezing then re-freezing ) Failing to provide meaningful customer service or dispute resolution These practices appear to constitute unfair and abusive acts under the Consumer Financial Protection Act ( 12 U.S.C. 5531 ).

Violation of Venmo 's Own User Agreement : Despite complying with all verification requirements, Venmo has denied me access to my legitimately earned funds.

Potential Unjust Enrichment : Holding consumer funds for extended periods may allow Venmo to benefit from interest or investment returns on money that rightfully belongs to consumers.

Inadequate Error Resolution : Venmo failed to provide adequate error resolution procedures as potentially required under Regulation E ( 12 CFR Part 1005 ).

Why This Action Is Unjustified Legitimate Funds : The {$420.00} in my account represents legitimate wages from my employer. My employer has NOT filed any complaint or dispute regarding these payments.

Full Compliance : I have verified my identity by providing a government-issued ID and have updated and verified my bank account information as requested. Venmo has all necessary documentation to confirm my identity and the legitimacy of my account.

No Explanation Provided : Venmo has cited only vague " security reasons '' and " unusual activity '' without providing any specific explanation of what policy I allegedly violated or what activity was considered unusual.

Inconsistent Actions : Venmo repeatedly froze and unfroze my account, demonstrating their own uncertainty about whether any legitimate concern existed.

Initial Setup Issues- Explanation of Bank Account Confusion : I am not technologically proficient with smartphones or apps. When I was ready to receive my first payment, my friend ( who was working the same job with me ) offered to help me set up my Venmo account. I handed him my phone because I did not understand how to navigate the app. 

Without my knowledge or realization at the time, he linked his own bank account to my Venmo account instead of helping me link mine. I was completely unaware this had happened until Venmo began questioning the bank account on file. This was an honest mistake made during initial account setup by someone trying to help me, not any form of fraudulent activity. 

As soon as I became aware of the issue, I attempted to correct it and link my own verified bank account, which I successfully did. Despite correcting this innocent error and fully verifying my own banking information, Venmo has refused to release my funds.

Company response to consumer: Closed with explanation