The Consumer Financial Protection Bureau (CFPB) has ordered PayPal to pay $25 million in refunds and fines, stemming from claims that it signed consumers up to ‘PayPal Credit’ (its online credit service), without them realising it. Specifically, the CFPB alleged that PayPal deceptively advertised promotions for PayPal Credit and enrolled consumers without their knowledge or permission.

What this means for you?

Under the terms of a recently filed consent order, PayPal is set to make redress payments of $15 million to affected consumers and to pay a $10 million civil penalty.