Consumer complaint received 2026-05-20 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: IL

Complaint narrative:
I opened a Venmo account on XX/XX/year>. On the same day, a friend sent me {$3000.00} through Venmo for legitimate college related expenses. I initiated a transfer to my linked bank account, and Venmo indicated the transfer would arrive on XX/XX/year>. On XX/XX/year>, I received an email from Venmo stating that my account had been suspended for alleged violations of the User Agreement and requesting identity verification documents. I immediately complied and submitted a valid government-issued ID that matched all information associated with my account. After verifying my identity, Venmo informed me that my account had been permanently deactivated. The company refused to provide any explanation regarding the alleged violation and stated that my funds would be held for 180 days before they would determine whether the funds could eventually be released. The sender of the {$3000.00} payment was also asked by Venmo to verify his identity and complied by submitting valid identification documents. To my knowledge, the sender also experienced account restrictions despite cooperating fully with XXXX verification requests. This demonstrates that both parties acted in good faith and attempted to comply with all platform requirements. The payment was legitimate, authorized, and related to college expenses. Since then, I have made extensive efforts to resolve this matter directly with Venmo before filing this complaint. I contacted Venmo support multiple times, once by phone, 3 times through chat support and sent 9 emails to the account specialist XXXX XXXX requesting clarification regarding : an explanation for the permanent deactivation and the 180-day hold on my funds, how to retrieve the funds out of my account, and how urgent this matter was as the payment was sent to me for college tuition expenses that are past due. During one phone call, a Venmo support representative informed me that he could not provide details himself and instructed me to reply to the specialist through email and request an explanation because I would allegedly receive an explanation there. However, when I received responses from the specialist team, the emails consisted only of generic or automated language that failed to address any of my specific questions. I am being penalized for a 'violation ' that occurred after I successfully provided documentation of my identity. I repeatedly explained that I was not requesting reinstatement of my account and only wanted information regarding the release of my {$3000.00}. By suspending both the sender and receiver simultaneously after the funds were moved, Venmo is effectively freezing a valid transaction from both ends without providing a path to resolution. Despite numerous attempts, I was unable to obtain : * A specific explanation for the alleged violation, * Any evidence that the transaction violated the user agreement * Any meaningful review or appeal process * Or any clear instructions regarding how or when my funds could be recovered before the 180-day hold period expires. I am filing this complaint because : 1. I fully complied with Venmos identity verification request. 2. The sender also complied with identity verification requests. 3. The payment was legitimate and authorized. 4. Venmo permanently deactivated my account without providing a meaningful explanation. 5. Venmo has failed to provide transparent communication or a reasonable process for recovering my funds. 6. Holding my {$3000.00} for 180 days without adequate explanation is causing financial hardship.

Company response to consumer: Closed with non-monetary relief