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PayPal Venmo fraud class action lawsuit overview:
- Who: Mohammad Al-Ramahi filed a class action lawsuit against PayPal, Inc.
- Why: Al-Ramahi claims PayPal fails to reimburse customers who are defrauded on its Venmo money transfer service.
- Where: The class action lawsuit was filed in California federal court.
PayPal fails to reimburse customers who signed up for its Venmo money transfer service and became victims of fraud, a new class action lawsuit alleges.
Plaintiff Mohammad Al-Ramahi claims PayPal customers who are defrauded on Venmo are “entitled to such reimbursement by federal regulations and the marketing representations of PayPal.”
PayPal falsely markets Venmo as a “safe way for consumers to send money” and withholds the truth about the dangers of using the service from its customers, the PayPal class action alleges.
“In fact, there are huge, undisclosed security risks of using Venmo that Defendant omitted from its marketing push to get its customers to sign up for Venmo,” the PayPal class action states.
PayPal class action alleges no recourse for Venmo fraud victims
Al-Ramahi claims PayPal fails to inform its customers that, in the event they are defrauded on the platform, there is “virtually no recourse for consumers to recoup losses due to fraud.”
Further, Al-Ramahi argues that unlike “virtually every other payment method commonly used by American consumers,” there is no protection nor virtually any recourse for account holders to get back their lost funds.
“The unique, misrepresented and undisclosed architecture of the Venmo payment system means that virtually any money transferred for any reason via Venmo is gone forever,” the PayPal class action states.
Al-Ramahi claims PayPal has a secret policy to not reimburse its customers who are defrauded on Venmo for any reason, even when the loss of funds is timely reported.
Al Ramahi claims PayPal is guilty of breach of contract and breach of the covenant of good faith and fair dealing and in violation of The Electronic Funds Transfers Act and California’s Unfair Competition Law and Consumer Legal Remedies Act.
Al-Ramahi wants to represent a nationwide class and California subclass of consumers who “incurred unreimbursed losses due to fraud on Venmo.”
A consumer filed a separate class action lawsuit against PayPal in March, accusing the company of misrepresenting fees associated with its “buy now, pay later” service.
Have you been defrauded while using Venmo? Let us know in the comments!
The plaintiff is represented by L. Timothy Fisher, Philip L. Fraietta and Julian C. Diamond of Bursor & Fisher, P.A.
The PayPal Venmo fraud class action lawsuit is Al-Ramahi v. PayPal, Inc., Case No. 5:22-cv-03632, in the U.S. District Court for the Northern District of California.
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181 thoughts onPayPal class action alleges company does not reimburse customers for Venmo losses
How can I participate in this class action lawsuit?
Venmo denied my claim for an unauthorized charge of $500 dollars even after I provided proof and the documents requested.
I would like to take part in this action also, Venmo allowed transaction to go through that I did not authorize & they denied my dispute & taking the merchants side.
I have the same issues
I was literally in a jam and I ask a buddy to send me some cash he said sent it to Venmo an when I when to transfer the money after giving them all the personal information my account was frozen! It 50 buck!! Why would you freeze my account the first time I use it? This now 5 days ago. I can’t even give it back to person that sent it to me. I can completely understand why this app is in a Class Action Lawsuit.
I was scammed out of $2000 just recently through Venmo. Amex immediately took care of half of it, had no idea that Venmo has zero protections against this. Spent hours speaking with Venmo to no avail. Supervisor seemed gleeful about the fact that I was scammed and there is no recourse. Venmo appears to be in cahoots with fraudsters. Would like to take part in this action.
Venmo stated that I violated their user agreement and they closed my account. They said they could hold my money for up to 180 days. I have emailed them several times trying to get them to let me transfer my money to another account. They have responded saying that because I violated their user agreement I could not do anything with my money. I however did nothing to violate their agreement. This is wrong. I want my money.
Please please add me! Venmo decided that because I disputed a couple small transactions that it was OK to freeze my account. They refused to let me talk to anybody and they refused to give me my money that’s frozen in my Venmo account. I have sent them five different IDs and two different bank accounts. And still, they will not release my money because they can’t verify my account which is ridiculous! They’re nothing but thieves !! Help please!