Man’s Venmo account frozen, restored after $180 dispute

FORT MILL, S.C. — Mark Simpson of Fort Mill had his Venmo account frozen and labeled “permanently deactivated” after attempting to transfer $180 for shared aircraft expenses.

Following an inquiry by Action 9 Attorney Jason Stoogenke, Venmo restored the account. The initial freeze was attributed to a violation of Venmo’s agreement without further details.

The issue began when Simpson’s brother used Venmo to send him $180 for expenses related to an airplane they co-own.

Simpson then tried to transfer the funds to his financial institution, which resulted in the account being frozen. He told Stoogenke that his primary concern was not the $180 but the lack of explanation for the account deactivation.

The notice Simpson received indicated his account was “permanently deactivated” for the “safety of the Venmo community” and that his activity had “been in violation of this agreement.” Simpson stated he asked for specifics but did not receive any.

Simpson has a long-standing passion for aviation. He explained, “I’ve loved airplanes ever since I was 4 years old…” This lifelong interest led him and his brother to jointly purchase a 1976 Tiger aircraft.

Simpson detailed the moment his account was frozen. “I tried to transfer it to my financial institution. It wouldn’t allow me. And I got a notice that my account had been frozen,” he said.

Simpson expressed his frustration with the lack of transparency from the company. “Now it’s become the principle, not so much the money,” Simpson said. “Why won’t you tell me why my account was deactivated?”

Stoogenke contacted PayPal, Venmo’s parent company, for clarification on Simpson’s case. PayPal declined to discuss the specifics of Simpson’s account with Stoogenke, citing privacy reasons.

Hours after Stoogenke’s inquiry, Venmo emailed Simpson directly. The company informed him that his account was restored and that the $180 was accessible.

Venmo explained that the simultaneous addition of a bank account and a debit card to his account had raised red flags, triggering the freeze. Simpson lamented the initial lack of clear communication from Venmo.

“They can deactivate your account due to fraudulent activity. Great. Tell me what you found. Won’t you tell me that? Very non-transparent,” he stated.

PayPal and Venmo remind customers that they “use sophisticated fraud detection tools and manual investigations’ to combat fraud.

They also state that they “freeze or limit accounts in order to help protect customers.”

If consumers believe their account has been unfairly frozen, attorney Stoogenke advises them to be persistent and continue seeking an explanation. He also encouraged individuals in such situations to contact him for assistance.

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