PayPal pays $25 million fine because of its credit program
Consumer Financial Protection Bureau’s claims making PayPal to Pay $25 Million fine to use its Online Credit Program (Bill me later) illegally.
Online shopping has made our lives easy, but it also comes at some cost. PayPal is considered a secure way to pay online where you don’t need to disclose your credit card details to the seller company or other website. You can simply login to your PayPal account and make the payment.
However, PayPal provides a service that is known as “Bill Me Later” Or “Buy Now Pay Later With PayPal Credit.” This service created trouble for PayPal, and Consumer Financial Protection Bureau (CFPB) has claimed that PayPay enrolled the users to its online credit program without their permission.
CFPB said that PayPal used deferred-promotion to make the consumers pay the bill later, but their policy is not clear and made it difficult for users to avoid the interest. Any consumers can pay the bill before a certain date to avoid such interest or late fee, but in case of PayPal it was not handled properly. New consumers who signed up first time faced more trouble, and they learned from their mistake when they received the statement that included interest charge and late fee.
PayPal spokeswoman said in her statement
PayPal takes consumers’ protection very seriously. We continually improve our products and enhance our communications to ensure a superior customer experience. Our focus is on ease of use, clarity and providing high-quality products that are useful to consumers and are in compliance with applicable laws.
Well, PayPal has agreed to Pay $10 million in penalties as well as $15 million to those who have been charged wrongly that has no justification.
Such issues make us learn that nothing comes for free in the world. Pay the bill later sounds quite good, but the good things can also turn into nightmare. We should always investigate before we make any monetary deal “even the bill has to be paid later.”