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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
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Add me
Add me please venmo frauded me out of like $7500 & dont care just took my money and dismissed me
Add me plz
on February27 2023, i submitted required document to connect my bank which failed to connect manually or Plaid. On March8 2023, I called, chat, email and frozen account was not solved.
Yes please add me
Yes please add me
I were getting fasle requests
I have a couple of users trying to get money payments. Calling my phone fraud information
Add me please
Please add me..
Venmo has froze my money of $7500 since Nov 21 2020 and has yet to release my funds and I have a lawyer fighting venmo as we speak his name is Gregory Pierre and so far things have been good but I haven’t been able to reach him in 6 months and or heard from him since he sent them a demand letter. Can someone please help me?