Consumer Financial Protection Bureau On PayPal Credit Enforcement Action

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Today, the Consumer Financial Protection Bureau is filing a complaint and a proposed consent order against PayPal for illegally signing up and billing tens of thousands of consumers for its online credit product, PayPal Credit. The Bureau alleges that PayPal lured in consumers to this product with deceptive advertising, signed up people without them knowing it, and then mishandled billing disputes when they arose. This kind of conduct has no place in the consumer financial marketplace. Under our proposed order, PayPal would return the $15 million that it illegally took from consumers and it would pay a $10 million penalty for its wrongful actions.
 
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Spidey329 said:
Whoa. I didn't even think this bureau did anything.
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I can attest to their aggressiveness. They were created to shake down financial services companies with their regulations and issue fines. A great revenue generator for the government.

"If you can't tax them, fine them!" should be their motto.
 
I don't have a problem with this. On more than one occasion, PayPal was changing my default preferred payment method to PayPal credit instead of using my PayPal balance (or instant transfer), which has always been the default method I'd used. Even after changing it back, I'd make an online payment (Netflix, for example) only to find out that it used PPC instead even with another payment method selected. It was very shady.

It was only within the last few months that it seems to have 'corrected' itself. Almost like they were under the microscope of regulators :p Screw em
 
I don't know. I never had any problem as long as I watched what I was doing. I have used PayPal for so many things I just never needed their credit service or used it. Never had them do anything shady other then stick it in front of my face hoping I'd use it.
 
lcpiper said:
I don't know. I never had any problem as long as I watched what I was doing.
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But that's just it. They reconfigured their web pages so that if you weren't careful, what you used to click just to go ahead and pay for something was now a button to use their credit service. Basic bait and switch. Sure, people should always be careful about what they're doing, but that was just a crappy move to do to a customer base that was more than willing to put up with the whole system that ebay set up. Ebay was already getting rich beyond their wildest dreams, to suck more money from their customers by trickery was just evil. They basically have most of this type market; resorting to being pricks wasn't necessary at all. Whoever came up with the idea of doing this should be hung by his balls/her tits and slapped in the face for each person that got caught in their web pages of deceit. Then dropped into a 50 foot hole filled with rats.
 
amddragonpc said:
I can attest to their aggressiveness. They were created to shake down financial services companies with their regulations and issue fines. A great revenue generator for the government.

"If you can't tax them, fine them!" should be their motto.
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All agencies are rouge and agressive under President Alinsky. DoJ has fined banks billions for political reasons. Thousands of lenders have been intimidated into giving loans to people who don't qualify (using the fraudulent "disparate impact" weapon). They are forced to sign confidenialtiy agreements when they settle. An EPA official once compared his job to Romans cruciying people to scare the rest of the village. No doubt Paypal has been targeted for politics because no way this admin care about "fraud" or dishonesty. Look at the billions wasted on stimu-pork and the "if you like your insurance you can keep your insurance" scam.

"EPA Official Not Only Touted 'Crucifying' Oil Companies, He Tried It"

http://www.forbes.com/sites/christo...-touted-crucifying-oil-companies-he-tried-it/
 
Haven't used PayPal since 2006, when I sold some douche bag an ATI 9700Pro that was shipped in working condition and was kept by the buyer, then later claimed it was bad and filed a dispute through PayPal. Fucker created a fake USPS tracking number and PayPal sided with him. He got to keep the card and thankfully, I had just withdrew the money into my bank account. Ever since, been banned to use PayPal. Oh well, can't trust a service that sides with scammers.
 
felt said:
Haven't used PayPal since 2006, when I sold some douche bag an ATI 9700Pro that was shipped in working condition and was kept by the buyer, then later claimed it was bad and filed a dispute through PayPal. Fucker created a fake USPS tracking number and PayPal sided with him. He got to keep the card and thankfully, I had just withdrew the money into my bank account. Ever since, been banned to use PayPal. Oh well, can't trust a service that sides with scammers.
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It's still one of the preferred tools for scammers a decade later.
 
roma said:
All agencies are rouge and agressive under President Alinsky. DoJ has fined banks billions for political reasons. Thousands of lenders have been intimidated into giving loans to people who don't qualify (using the fraudulent "disparate impact" weapon). They are forced to sign confidenialtiy agreements when they settle. An EPA official once compared his job to Romans cruciying people to scare the rest of the village. No doubt Paypal has been targeted for politics because no way this admin care about "fraud" or dishonesty. Look at the billions wasted on stimu-pork and the "if you like your insurance you can keep your insurance" scam.

"EPA Official Not Only Touted 'Crucifying' Oil Companies, He Tried It"

http://www.forbes.com/sites/christo...-touted-crucifying-oil-companies-he-tried-it/
Click to expand...

Yawn. Another lunatic on the internet. Don't you have something better to do with your life?

That said, the CFPB has been reckless in most of their actions. This seems reasonable and rational, but many times it seems they do not know how the financial services industry works and do more harm to the consumer than good. My CU has been dealing with it for years now. It's frustrating.
 
This is what happens when you continually keep avoiding being classified as a Bank, and don't have to follow an rules.

I don't know how they do it, but it needs to stop.

They are a fucking BANK !
 
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