PayPal Could Pay $25 Million for Alleged Illegal Credit Sign-Ups

FRESNO, Calif. (KMJ) — PayPal would pay $15 million to its users and a $10 million penalty, for illegally enrolling consumers in its credit program — formerly known as Bill Me Later — under a proposed consent order.

The Consumer Financial Protection Bureau accuses the California-based company of deceptively advertising promotional benefits, which it failed to honor.

Some customers were forced to use PayPal credit, instead of their established payment method, and then had to deal with billing disputes, which were improperly handled.

In addition to the millions in reimbursements and penalties, the online service would also be forced to improve disclosures.

The CFPB says online shopping has become a way of life for many Americans, and it’s important that they’re treated fairly.