Consumer complaint received 2025-11-12 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: FL

Complaint narrative:
This complaint is directly tied to my prior CFPB complaint # XXXX, which XXXX  falsely claimed to have resolved. The company provided no factual basis for their actions, no explanation for the alleged debt, and ignored all core issues. 

I am disputing XXXX response to CFPB Complaint XXXX. Their reply is factually incorrect, legally unsupported, and fails to address the central issues. 

Venmo claims they have internal evidence linking my verified Venmo account ( XXXX ) to an unrelated profile ( inactiveXXXX XXXX with a {$990.00} balance, but they refuse to disclose any factual basis or identifying information used to support this claim. 

I must emphasize the following : XXXX. I do not own, control, or recognize the account inactiveXXXX. 

The XXXX accounts do not share : email phone number address legal name bank account ID documents device history any matching identifiers whatsoever. 

XXXX  has disclosed no evidence, no identifiers, and no rationale to justify linking these accounts. 



XXXX. Even if the disputed account were mine ( it is not ), the alleged {$990.00} balance is impossible. 

XXXX  transactions can not place a user {$990.00} without linked bank withdrawals or overdrafts. 
I was never notified of any dispute, any chargeback, any reversal, or any bank pull. 
I was never given an opportunity to contest any transaction or any alleged debt. 

No lawful negative balance can be created without notice and without a funding source. 

XXXX  has not shown how this {$990.00} balance was created. 



XXXX. Even if the disputed account were mine, and even if {$990.00} were legitimate, Venmo has no lawful authority to seize unrelated funds. 

XXXX froze {$500.00} I received in my verified Florida account ( XXXX ) and attempted to apply it as setoff to a completely different profile that shares no identifiers. 

Cross-account setoff is not permitted under federal consumer-finance law and is expressly prohibited for money transmitters in multiple regulatory frameworks unless : the accounts are legally the same person AND the debt is valid AND the consumer was provided notice, opportunity to dispute, and due process. 

XXXX  satisfied none of these requirements. 

This is an unlawful restraint of consumer funds, not a permitted setoff. 



XXXX. XXXX is demanding {$990.00} before releasing my own unrelated {$500.00} which is coercive. 

This conduct constitutes : Theft by conversion ( withholding funds to compel payment ) Coercive collection practice Unfair/Deceptive Act or Practice ( UDAP ) Unauthorized restraint of consumer funds XXXX  can not force a consumer to pay an unproven, disputed debt by confiscating unrelated money. 



XXXX. XXXX response to CFPB did not address any of these issues. 

They simply repeated that they have internal evidence but refuse to provide any basis. 
They also did not address : how the {$990.00} balance was created why they requested a XXXX Bank statement for a debt unrelated to the XXXX account why they froze funds without due process why they refused to explain the linkage why they believe cross-account setoff is lawful why they refuse to release my {$500.00} The response did not resolve the issue, did not answer the complaint, and did not provide any factual basis for their actions. 



I am requesting that the CFPB : XXXX. Reopen and re-review this complaint, as the companys prior response did not address the core issues presented. 
XXXX. Require XXXX to provide a factual, documented explanation of the criteria or data used to conclude that my verified Venmo account is linked to the unrelated profile inactiveXXXX. 
XXXX. Require XXXX/PayPal to disclose how the alleged {$990.00} balance was created, including transaction records, dates, and the basis for the negative amount. 
XXXX. Require XXXX/PayPal to produce proof that proper consumer due process was followedincluding notices, dispute opportunities, or communications allegedly sent to the account holder relating to the disputed {$990.00} balance. 
XXXX. Evaluate XXXX/PayPals cross-account setoff practice for potential violations of federal consumer protection laws, including UDAP, improper restraint of consumer funds, and coercive collection practices. 
XXXX. Order the immediate release of my frozen {$500.00} balance, as no lawful basis has been provided for withholding funds belonging to a separate, verified account. 

I have cooperated fully and provided ID verification, but XXXX  has provided no lawful explanation for seizing my money. 

Thank you for your review.

Company response to consumer: Closed with non-monetary relief