Category Archives: Paypal

Paypal Fined for Deceptive Practices

Online mega money-transfer company, Paypal, was fined $10 million for deceptive advertising.

The company enrolled customers into their credit program without getting permission.

According to The Consumer Financial Protection Bureau, at some point Paypal required customers to begin using PayPal Credit instead of another payment method.

People couldn’t figure out how they were enrolled into Paypal’s credit program, which is formerly “Bill Me Later.” Most found out after reviewing their credit reports, and even then, consumers had trouble getting assistance from Paypal.

Paypal has agreed to refund $15 million to those customers impacted by their ruse, and a $10 million penalty to The Consumer Financial Protection Bureau.

Additionally, the consumer bureau says Paypal spurned their responsibility in posting payments, removing late fees, handling disputes, and honoring their promotions.

People at Boraie Development LLC are uneasy because Paypal hasn’t admitted or denied the charges.

The settlement still needs the signature of a Maryland judge for final approval.