Consumer complaint received 2025-06-05 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: NC

Complaint narrative:
To Whom It May Concern, I am filing this complaint against Venmo, a service of XXXX XXXX XXXX, regarding a {$700.00} debt they have incorrectly assigned to me despite clear evidence I never kept the money in question. 

Summary of Events : On XX/XX/year>, a client of mine, XXXX XXXX, accidentally sent me {$700.00} via Venmo. Within XXXX minute of receiving the funds, I sent the full {$700.00} back to him using Venmo with the label Refund. 

I never transferred the funds to my bank. 

I acted in good faith and immediately returned the mistaken payment. 

XXXX confirmed in text messages that the transfer was a mistake and asked for it back I complied. 

XXXX XXXX : XXXX later filed a dispute claiming the transaction was unauthorized. 

Venmo refunded him the {$700.00}, even though I had already returned the money via Venmo. 

As a result, Venmo has now charged me {$700.00} again, which has caused my account to be locked and my Venmo balance to go negative. 

Venmo applied a {$40.00} payment from my client to reduce this balance without my consent. Now, I am being held accountable for a debt I do not owe, and my ability to use the account has been frozen. 

Additional Issues : Venmo blocked a cryptocurrency purchase, causing me to miss a potential investment opportunity. 

Customer service reps have hung up on me, failed to escalate, and told me they have no authority over disputes. 

Even agents who understood my case said they could not override the dispute departments decision. 

Venmo communications misleadingly show XXXX payment to me as being on XX/XX/XXXX, despite it clearly occurring on XX/XX/XXXX. 

Attached Evidence : I am attaching the following images as part of this complaint : Venmo transactions showing : {$700.00} received from XXXX {$700.00} sent back with Refund note Chargebacks and dispute credits Text messages between me and XXXX confirming : The money was sent by mistake He asked me to return it I did return it An email from XXXX admitting his account was compromised. 

Venmo emails confirming : They credited XXXX XXXX holding me responsible. 

The account was frozen Error email from Venmo stating the original transfer failed from XXXX bank Dispute center screenshot showing an unauthorized claim filed by XXXX after funds were returned My Request to the CFPB : I respectfully ask the CFPB to investigate this matter and push Venmo to : Remove the {$700.00} charge and restore my account balance. 

Unfreeze my Venmo account immediately. 

Reimburse the {$40.00} wrongfully taken from a separate client transaction. 

Fix their dispute process to account for immediate refunds. 

Provide a full explanation of how a returned payment could still result in a successful dispute. 

I did the right thing and sent the money back. Now Im being punished as if I stole it. This is not just frustrating its financially harmful and unethical. 

Sincerely, XXXX XXXX Venmo XXXX : XXXX XXXX XXXXXXXX XXXX XXXX

Company response to consumer: Closed with explanation