It was just yesterday that we heard about how Samsung no longer needs to pay $930 million for its Apple patent case dispute, but when it comes to PayPal, no such luck there. In fact, the Consumer Financial Protection Bureau claims that PayPal has signed up consumers to its credit service known as PayPal Credit without their permission. As a result, the US consumer finance watchdog is believed to have ordered PayPal to fork out $25 million in refunds and fines.
According to the Consumer Financial Protection Bureau, PayPal ran deceptively advertised promotions where PayPal Credit is concerned. For those who are not in the know, PayPal Credit used to be known as Bill Me Later, which happens to be a line of credit that consumers are able to use in order to pay for online transactions as well as other purchases. Not only that, PayPal Credit apparently signed up customers for credit without any prior permission from them, in addition to directing users to its PayPal Credit rather than their preferred payment method as well as not handling billing disputes well.
Looks like the chickens have finally come home to roost, and that PayPal will hopefully learn a lesson from this debacle. However, $25 million is but a tiny amount of what PayPal is worth anyways.