PayPal have found themselves in $25 million worth of trouble after signing consumers up to a service they didn’t want

Recently you may have noticed PayPal has introduced a “Pay After Delivery” or “Bill Me Later” option which promises to give you peace of mind when ordering things online. It’s a new feature which is placed on accounts by default and can often be annoying to remember to avoid. And while many have likely used the option and paid their account at a later date, many have found themselves in a bit of trouble, and this is only half of what PayPal are being fined for.

According to the Consumer Financial Protection Bureau (or CFPB), PayPal have been doing some pretty shady things as of late and the thing mentioned above is just the tip of the iceberg. It seems along with the Bill Me Later option which is usually active by default, PayPal has also been quietly signing people up to the service without their permission, deceptively advertised its benefits, and forced some people to use PayPal Credit instead of other payment methods. Along with that they’re being accused of mishandling billing in such a way that customers were charged late fees and extra interest charges.

The complaint against PayPal states:

“Many of these consumers learned of their PayPal Credit accounts for the first time when they received billing statements with accrued late fees and interest charges, or when they received debt-collection calls.”

As a result of these complaints, PayPal is being ordered to shell out $15 million in reimbursements to consumers mistakenly enrolled in the program or who have made purchases through it, as well as those who received fees from the service. In addition, they’re also required to pay $10 million to the CFPB’s Civil PenaltyFund, which pays out victims of scams like this when companies cannot. They’re also being told to make people more aware when they’re being signed up to the credit program, or being charged fees and interest.

PayPal has agreed to these measures, but haven’t admitted any wrongdoings, saying:

“We continually improve our products and enhance our communications to ensure a superior customer experience,” adding that “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.”

Though if you did nothing wrong PayPal, why would you accept the measures? Eh?

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