If you’re like most people who buy sneakers these days, chances are that you have a PayPal account and you’ve used that account to buy shoes online. And you’ve always felt safe using PayPal, right?
It turns out that the popular money transferring service isn’t as reputable and trustworthy as we thought it was. According to Gizmodo, PayPal has to pay $15 million in refunds to its customers and $10 million in fines to the Consumer Financial Protection Bureau. Damn!
“After the Consumer Financial Protection Bureau filed a complaint against PayPal today, the company quickly agreed to refund $15 million to customers it ripped off over the past few years.
PayPal will also pay an extra $10 million in fines to the CFPB, so the total settlement is $25 million. The CFPB accused PayPal of all sorts of schemes, so many that it kinda sounds like PayPal is run by my Grandpa Hirtz in his 1980s casino-boat drinking days rather than business professionals.
The almost impressively illegal scams that PayPal’s now paying for include:
- Advertising deferred-interest promotions, but then flat-out giving customers the wrong information when they asked about them, or just never answering the customer service line
- Charging customers with the interest they were unable to defer due to receiving the wrong information and/or never being able to speak to a representative about the deferred-interest promotion
- Automatically signing people up for credit accounts without asking permission
- Setting these credit accounts as the default for purchasing, which led to people getting hit with late fees and interest fees on accounts they didn’t know existed
- Lying about $5 and $10 credit promotions and then never fulfilling them (total Grandpa move)
- Not bothering to remove late fees even after people paid them
- Taking weeks to process payments
- Not bothering resolving customer disputes
It’s telling that the company ponied up the money within a day of the complaint.”
Goes to show you that even the things or people that you trust the most can betray you or do some shady stuff without your knowing. I didn’t expect this from you PayPal. Smh..