Feds say PayPal illegally signed consumers up for credit

[gdale6]

http://www.cbsnews.com/news/feds-say-paypal-illegally-signed-consumers-up-for-credit/

Federal consumer watchdogs say PayPal illegally signed up customers for the online payment processor's online credit product.

The Consumer Financial Protection Bureau on Tuesday filed a lawsuit in federal court charging PayPal with enrolling customers in the product, called PayPal Credit, without their permission. Customers were also allegedly required to use the service, formerly called Bill Me Later, instead of other payment methods.

[Kenny]

I'm glad someone is taking it to Paypal.. who they themselves say they aren't a bank! Me and the ebay rep on the phone the paypal rep was talking to were both flabbergasted. I'm like.. REALLY?! Gotta love hating them.

[Existentialist]

Probably reasonable to assert Ebay saw this coming down the pike and began the process of divesting itself as Paypal has always been problematic to some degree or other.

[Revelate]

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@Existentialist wrote:

Probably reasonable to assert Ebay saw this coming down the pike and began the process of divesting itself as Paypal has always been problematic to some degree or other.

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This isn't going to be a massive fine most likely and I doubt it factored into the decision much.  Paypal was spun out because that's where the revenue was and likely because certain activist investors were pushing it.  I'm not certain Ebay makes much on their auction site, the fee increases over the past several years suggest they weren't breaking even.

[Anonymous]

Might be a good time to send them a DV letter 

[kittywitty]

geesh i love paypal better then any bank i've ever used!!

[Imperfectfuture]

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@Revelate wrote:

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@Existentialist wrote:

Probably reasonable to assert Ebay saw this coming down the pike and began the process of divesting itself as Paypal has always been problematic to some degree or other.

---

This isn't going to be a massive fine most likely and I doubt it factored into the decision much.  Paypal was spun out because that's where the revenue was and likely because certain activist investors were pushing it.  I'm not certain Ebay makes much on their auction site, the fee increases over the past several years suggest they weren't breaking even.

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So much this (care of CNBC).