PayPal Inc., an online-payments company, must pay the Consumer Financial Protection Bureau a $10 million fine under a proposed settlement and make $15 million in reimbursements to consumers who were allegedly signed up for a credit product without their knowledge.
A wholly owned subsidiary of EBay Inc., PayPal lured consumers to the product, PayPal Credit, with deceptive advertising, signed consumers up for credit without their permission, and mishandled billing disputes, according to CFPB Director Richard Cordray. The CFPB also alleged PayPal abusively charged consumers deferred interest.
The agency filed a complaint and proposed consent order with the U.S. District Court ...
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