PayPal Has To Pay $25 Million For Being Sketchy As Hell

PayPal Has To Pay $25 Million For Being Sketchy As Hell
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After the US Consumer Financial Protection Bureau filed a complaint against PayPal today, the company quickly agreed to refund $US15 million to customers it ripped off over the past few years.

PayPal will also pay an extra $US10 million in fines to the CFPB, so the total settlement is $US25 million. The CFPB accused PayPal of all sorts of schemes, so many that it kinda sounds like PayPal is run by my Grandpa Hirtz in his 1980s casino-boat drinking days rather than business professionals.

The almost impressively illegal scams that PayPal’s now paying for include:

  • Advertising deferred-interest promotions, but then flat-out giving customers the wrong information when they asked about them, or just never answering the customer service line
  • Charging customers with the interest they were unable to defer due to receiving the wrong information and/or never being able to speak to a representative about the deferred-interest promotion
  • Automatically signing people up for credit accounts without asking permission
  • Setting these credit accounts as the default for purchasing, which led to people getting hit with late fees and interest fees on accounts they didn’t know existed
  • Lying about $US5 and $US10 credit promotions and then never fulfilling them (total Grandpa move)
  • Not bothering to remove late fees even after people paid them
  • Taking weeks to process payments
  • Not bothering resolving customer disputes

It’s telling that the company ponied up the money within a day of the complaint.

[Bloomberg via CFPB]