Consumer complaint received 2024-11-18 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: TX

Complaint narrative:
Introduction : I am writing to file a formal complaint against Venmo, which is owned by PayPal, regarding their mishandling of a chargeback dispute and their refusal to properly investigate a fraudulent chargeback initiated against me. Despite providing clear and extensive evidence showing the legitimacy of the transaction, Venmo has frozen my funds and failed to resolve the issue. I have contacted Venmo numerous times, escalated the matter to PayPals Office of Global Customer Complaints, and submitted all requested documentation, but my case remains unresolved. I am now seeking assistance from the Consumer Financial Protection Bureau ( CFPB ) to help resolve this issue, as I believe Venmo has failed in its duties to investigate fraudulent chargebacks, leaving me without recourse and financial protection. 

-- - Summary of the Issue : The disputed payment was made on XX/XX/year>, by my roommate for rent via Venmo. The payment was subsequently disputed by the sender through their bank, resulting in Venmo freezing my funds XXXX weeks later without any investigation or review of the documentation I submitted. 

Since then, I have provided extensive documentation to prove that the transaction was legitimate, including : - Proof of an ongoing relationship as roommates - Text message exchanges acknowledging the payment - Photos showing the sender in my home Despite these efforts, Venmo has failed to properly investigate or resolve the issue, leaving me without access to the funds, causing significant financial hardship.

-- - Key Concerns : 1. Miscommunication and Conflicting Information from Venmo Representatives : Venmo representatives initially misinformed me about the payment method, first stating that it was made via credit card, and later clarifying that it was an ACH transfer. This confusion led me down the wrong path in the dispute process and caused significant delays. It also contributed to wasted time and missed opportunities during a volatile market period.

2. Failure to Properly Review and Investigate Documentation : Despite submitting 20 pieces of evidence to prove the transaction was legitimate, Venmo never properly reviewed this documentation. Instead, I was told it was incorrectly submitted and that there was no follow-up investigation into the evidence I provided. This lack of transparency and proper review has left me without a proper resolution.

3. Lack of Transparency and User Education : Venmo does not provide clear guidance on how ACH transactions are processed or how users should handle chargebacks, leaving customers uninformed about their rights. This lack of transparency has made it difficult for me to navigate the dispute process effectively.

4. Fraudulent Behavior by the Buyer and Mishandling by Venmo : The chargeback was initiated based on the false claim that the transaction was unauthorized. In reality, the buyer authorized the transaction, but Venmo accepted this invalid reason without properly verifying it. Venmo closed the chargeback request within three minutes without giving me the opportunity to submit documentation, despite their earlier assurances that I would have a chance to provide evidence. This quick resolution and lack of internal investigation by Venmo led to the fraudulent chargeback being processed, leaving me without recourse. 

XXXX. Failure to Follow XXXX XXXX XXXX House Procedures : The bank did not follow the XXXX XXXX XXXX House 's established procedures when handling this chargeback. The documentation I provided was not properly reviewed, and no adequate investigation was conducted into the legitimacy of the transaction. The failure to follow these procedures has resulted in a wrongful chargeback and financial loss for me.

-- - Request for Resolution : Given the issues outlined above, I am requesting the following actions : 1. Immediate Refund of Debited Funds : I request a full refund of the {$5200.00} that was debited from my account. The chargeback was based on a false claim of unauthorized activity, and I should not bear the financial loss due to Venmos failure to properly support my case or challenge the banks incorrect decision.

2. Escalation to a Senior Representative : I request that my case be escalated to a senior representative for human review. The situation is too complex for an automated system and requires proper oversight to resolve.

3. Investigation into Fraudulent Chargeback and User Conduct : I request that Venmo conduct an investigation into the fraudulent chargeback and the buyers behavior. There is clear evidence of fraud, and Venmo should take steps to prevent such activities from occurring in the future.

4. Formal Apology and Compensation : I expect a formal apology from Venmo for their lack of support, misleading information, and for providing incorrect and conflicting details regarding the nature of the transaction. The failure to properly handle this dispute has caused me significant financial hardship and emotional distress.

-- - Evidence Provided : - Venmo Dispute IDs : XXXX, XXXX - XXXX  Complaint ID : XXXX - XXXX Escalation ID : XXXX - XXXX Submitted : XXXX pieces of evidence, including proof of an ongoing relationship and the buyers authorization of the transaction. 

-- - Next Steps : Please confirm receipt of this complaint and advise on the next steps for resolution. I request that the CFPB investigate this matter and help ensure that Venmo takes appropriate action to resolve this issue and protect consumers from fraudulent chargebacks. 

Thank you for your attention to this matter. 

Sincerely, Venmo XXXX

Company response to consumer: Closed with non-monetary relief