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Have you ever used PayPal? You may be eligible for a refund.
The electronic payment company PayPal, will pay $25 million to settle a lawsuit with the Consumer Financial Protection Bureau (CFPB). According to the suit, CFPB accused PayPal of illegally signing customers up for PayPal Credit, formerly known as Bill Me Later, without their permission. Many customers did not realize they were enrolled in the program until they were charged interest and late fees.
PayPal, who neither admits nor denies fault, has agreed in a consent order to pay $15 million in refunds to customers and a $10 million penalty to CFPB.
Alleged Illegal Practices
In addition to illegally enrolling clients in PayPal Credit, the company is also accused of:
In addition to paying $25 million in refunds and fines, PayPal must also:
The company has not announced any procedures on how they will identify eligible customers and issue any refunds yet. The announced consent order is currently only a proposed order. It must first be approved by a judge before PayPal must make refund payments.
If you believe that you have been charged fees and interests due to unfair or illegal practices by PayPal or any other credit company, consult with an experienced consumer protection attorney for help.