Consumer complaint received 2026-01-08 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: Paypal Holdings, Inc
State: TX

Complaint narrative:
To Whom It May Concern, I am submitting this formal complaint against Venmo ( a PayPal service ) for improperly restricting my account and refusing to allow me access to funds that were validly paid to me, without clear justification, adequate verification procedures, or timely resolution. 

Company Information Company : XXXX XXXX PayPal , XXXX XXXX 
Product/Service : XXXX wallet / peer-to-peer payment services Description of the Issue Venmo accepted a payment made XXXX XXXX, and the funds were successfully credited to my Venmo account. After accepting the payment, Venmo restricted my account and denied me the ability to access, spend, or transfer my own money. 

Despite repeated attempts to resolve the issue, Venmo has failed to : Provide a clear explanation for the restriction, Identify any specific policy violation, Offer an effective or timely verification process, or Provide a definite timeline for the release of my funds. 

Inadequate Verification and Unfair Delay Venmo does not appear to maintain adequate systems to instantly or reasonably verify customers once funds are accepted. Instead, consumers are subjected to prolonged and unexplained holds, during which access to their money is denied. 

This practice appears willful and systemic, as funds are accepted first and access is restricted afterward, without meaningful due process or prompt verification options. These unreasonable delays allow Venmo to maintain control over consumer funds while the rightful owner is blocked from accessing them. 

While I can not verify how Venmo internally handles held funds, the lack of transparency and extended restrictions raise serious concerns about unfair financial practices, particularly when consumers are denied access to their money for extended periods without lawful justification. 

Additional Consumer Concerns I was informed through the Better Business Bureau ( BBB ) that Venmo is not BBB-accredited, and public consumer reviews indicate a consistent pattern of complaints involving accepted payments followed by restricted access to funds. This pattern suggests a broader consumer protection issue. 

Laws and Consumer Rights Implicated Venmos conduct may constitute : Unfair or deceptive acts or practices under consumer financial protection laws, Failure to provide clear disclosures regarding fund availability and account restrictions, Improper withholding of consumer funds without timely verification or resolution. 

Harm Caused As a result of XXXX actions, I have suffered : Loss of access to my own money, Financial hardship and disruption, Emotional distress and uncertainty regarding the safety of my funds. 

Requested Resolution I respectfully request that the CFPB require Venmo to : Immediately release my funds or provide a lawful, written basis for any continued hold, Restore full access to my account or remit my balance to me by alternative means, Provide clear documentation explaining the restriction and verification requirements, and Implement fair and timely verification procedures that do not unreasonably deny consumers access to their own funds. 

I certify that the information provided in this complaint is true and accurate to the best of my knowledge. 

Thank you for your attention to this matter. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation