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PayPal Leaders Accused of Backsliding on Unfair Credit Practices

Aug. 4, 2022, 7:44 PM

A PayPal Holdings Inc. investor sued its leaders in Delaware, claiming the company misled the public about its shoddy compliance with a regulatory settlement requiring it to reform unfair practices involving its consumer credit services.

The lawsuit, filed Wednesday, targets members of PayPal’s board and senior management. It accuses them of overseeing wide-ranging violations of federal consumer protection laws and regulations while telling shareholders the company was fulfilling its obligations under a 2015 agreement with the Consumer Financial Protection Bureau.

The ongoing violations include gouging merchants on fees through the Venmo app, signing customers up for credit without their knowledge, ...