PayPal got hit with a $25 million fine for deceiving their customers. The pay later button is at the root of the problem, I know when I first started seeing it I thought it was annoying. I just want to pay for my domain registration, not looking to pay later for $10.99.
Rob Beschizza wrote on Boing Boing covered the story:
A few months ago, I noticed that PayPal put a “pay later” button where the usual payment button would be. It’s a tricky way to snooker users into the credit/debt treadmill, and PayPal has been fined for this fraudulent behavior, writes Josh Lowensohn.
The organization says PayPal signed people up to the service without their permission, deceptively advertised its benefits (which never materialized in some cases), forced users to use PayPal Credit instead of other payment methods, and “mishandled” billing in a way that raked up late fees and extra interest charges. All in all, very bad things for people trying to spend money on the internet.
“Many of these consumers learned of their PayPal Credit accounts for the first time when they received billing statements with accrued late fees and interest charges, or when they received debt-collection calls,” the complaint says.
Read the full story on Boing Boing
The $25 million should be paid now and not later.