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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
Add me plz
Please add me.
Pls add me. I’ve had an Acct with them for many years and have questioned many transactions
Please add me, not only was my info compromise but I’m getting notices that they demand payment
Please add me. I’ve questioned charges about this in my account and was never given a resolution
Sign me up I have been charged multiple on my PayPal account for unknown reasons and never received any credit for the charges. I received a call from a company who was going to deliver my new TV system. The order was placed in New York and I live in Wisconsin. I did some research and I had charges in New York, Ohio, Texas and Virginia. I never left my house. I had my job deposit money and it was not received by me or replaced. I was supposed to receive bonus from venmo for referring 4 friends but didn’t get any thing. I was supposed to receive a new PayPal card on December 27th and receive a $5 bonus on the card. I just received the card and no bonus.
Please add me there are charges on my PayPal too them there was fraud on it they keep calling
Venmo has had my account frozen since March 31st, 2021 and they are refusing to give me access to my money that is in the account. They said I violated terms after I tried to transfer to regions account
Hi I’ve also been a victim of the same bs Venmo likes to do to many man more. I’ve had three different claims that were denied and just took me as a joke when I called in and asked about the reasons why my claims were denied and all I got was is I’m not getting my money back after someone frauded me and was a victim of identity theft
Would this also count for Venmo freezing accounts that have done nothing wrong and refusing to unfreeze them.
How can i be added. Add me too PayPal and Venmo please.
Encountered a scammer who was so sneaky that it appeared that he was our neighbor who lives just down the street! My husband is our HOA president and the neighbor is the treasurer. The neighbor said he was out of town and appeared to be asking for some help paying a contractor for the HOA that he’d forgotten to pay by check. Everything about that email looked like it was absolutely from our neighbor. in the end there were three transactions that went through before my husband realized what was happening. Two had gone through our bank account and one was still pending, so we can called our bank and put a stop payment. However, Venmo was so nice as to see that the money hadn’t been paid so they went and paid it themselves. We never knew Venmo did this! We did not know that Venmo acted as a bank. We thought they just conducted wire transfers of some sort between parties. Now Venmo has froze in my husbands account until he pays that money that they so generously offered to the scammer. Unfortunately, a few days later grandma used this account to deposit her Christmas money and Venmo immediately took it as a partial payment for the lost funds from the scammer. We cannot believe this has happened! Venmo will not allow my husband to close his account and grandma had never used his account prior for such payments, so we didn’t see it coming.
I’m in!!! I’ve lost so much $ due to PayPal / Venmo scams and PayPal has never protected me! PayPal also knowingly allows users from all over the world to register the same username so you can mistakenly send $ to the wrong user!!! It’s happened twice to me, PayPal will not refund my money!!! However they are aware the system is flawed bc the rep is the one who explained this to me for why it happened! This needs to be investigated as part of the class action!
Please add me
Please add me I’ve had at least 2 PayPal and 1 Venmo account breached