PayPal fined $25m for tricking users into credit program


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Thank goodness we have the Consumer Financial Protection Bureau. A few years ago, your only recourse would be a complaint with the FTC, which has less clout than the Better Business Bureau.

Have a look at who’s been promoting the CFPB - and who’s been working diligently to weaken or eliminate it.


How much of the settlement goes into the 1%er governed general pork fund vs comping the actual damaged party.


I was not aware of this general pork fund. According to Bloomberg, it’s $15M in reimbursements and $10M to a fund for future reimbursements, for people who are owed by companies that can’t pay.


I noticed it more than a year ago when they offered “$10 off your purchase” is you used “bill-me-later” and I was tempted, but recognized right away it was just another credit card, and I don’t really need another credit card so I passed (of course it still comes up every time I try to pay for something, I just keep ignoring it.)


God, I hate this PayPal Credit thing! I want to make it go away in all transactions in which I’m either the buyer or the seller. There’s no button for that. Assholes.


Remember way back when they had a “money market” and your positive Paypal balance could actually gain piddling amounts of interest?


That went away because regulators wanted interest bearing accounts to be handled by an entity with a banking license. Which PP doesn’t want to touch with a ten foot pole (except in luxemburg) (no I’m not joking))


It seems ironic that an entity needs a banking license to hand interest-bearing accounts but evidently needs no such license to charge interest on loans, instead of the other way around.


Even though I worked there I can’t say I understand all the regulatory requirements. Obscure and Byzantine don’t even begin to describe it.

Also, even though it is branded as PayPal credit, that is likely why the correspondence is done through a different business unit. So regulatory creep can be contained.


Brought to you from the same great mind-space that hates babies.


And this is just one of their dozens of sleazy practices.


It’s not a fine, it’s a small fee.


Ask me about their sleazy practices. While it won’t change your opinion, I can at least tell you why shit is fucked up.


How the hell is it so easy to ‘click through’ this crap and form a binding agreement anyway?
You should have to solve a puzzle or something that requires some kind of cognitive engagement. My brother was using my (htpc, sorta) living room computer a while ago and I watched him install silverlight, clicking ‘ok’ to stuff he didn’t even try to read multiple times before I had a chance to say, “Stop, don’t.” Maybe we need a 30 second cooling off period, then ask, “Did you really mean to agree to…”


Did not RTFA this time but most settlements cash out to the law firm and then public bodies often to the general fund, rarely do the directly affected get the full or even proportionate compensation for their loss in a big class action after the locusts are finished.


Well don’t let that stop you from commenting. This case is not a class action suit.


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