By Aruna Viswanatha
WASHINGTON--PayPal Inc. will pay $25 million to resolve
allegations that it illegally signed up customers for unwanted
online credit, the Consumer Financial Protection Bureau said
Tuesday.
The agency said PayPal, through an online credit product,
advertised benefits that it failed to honor, signed customers up
for credit without their permission, and made them use the PayPal
product instead of their preferred payment method.
PayPal, the payments unit of eBay Inc., neither admitted nor
denied the allegations, according to the settlement. EBay and
PayPal plan to split into separate publicly traded companies
sometime in the third quarter.
Write to Aruna Viswanatha at aruna.viswanatha@wsj.com
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