PayPal, Inc., Bill Me Later, Inc.
Enforcement, Mobile Financial Services, Deposits
In 2015, the CFPB ordered PayPal to “return $15 million to customers” and pay a $10 million fine, charging the payments company had illegally enrolled “customers for an online credit program without their permission.” The CFPB alleged PayPal “used deceptive advertising for its PayPal Credit program … known as Bill Me Later,” “failed to honor advertised promotions,” and “abusively charged consumers deferred interest fees.”
The CFPB also alleged that PayPal “failed to honor advertised promotions,” “abusively charged consumers deferred interest fees that company practices made difficult to avoid,” “neglected to post payments or remove late fees and interest charges from bills even when website failures left customers unable to make payments,” and “mishandled customer disputes about payments.”
“PayPal and the CFPB agreed to a consent order that would require the company to return $15 million to customers who were affected by the alleged practices. The firm also must pay a $10 million penalty to the consumer agency.” [Kevin McCoy, “PayPal to pay $25M in refunds and penalties,” USA Today, 05/20/15]
Inactive or Resolved