Consumer Bureau Action Tracker

CFPB v. PayPal, Inc., Bill Me Later, Inc.


State

Nationwide

target

PayPal, Inc., Bill Me Later, Inc.

Topics

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 sued PayPal for allegedly illegally enrolling “customers for an online credit program without their permission.” The CFPB alleged PayPal “used deceptive advertising for its PayPal Credit program, previously known as Bill Me Later.”

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]

Status

Inactive or Resolved


1:15-cv-01426 5/19/2015 5/21/2015

CFPB Takes Action Against PayPal for Illegally Signing Up Customers for Unwanted Online Credit
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/bill-me-later-paypal/

  • Consumer Financial Protection Bureau (CFPB)
  • Federal district court case
  • U.S. District Court for the District of Maryland
  • Nonbank
  • $25,000,000
  • Not Available

Close

Join The Fight!

We need your help to hold powerful special interests accountable and empower hardworking Americans. Join our fight today!