The Jig Is Up: Paypal To Refund $15 Million To Customers For Bad Service
Reports estimate the sneaker resell market is a $1 Billion industry and a lot of that cash is usually handled through the popular money transfer service that is Paypal. I would go as far to say that Paypal is the go-to service for sneaker deals for at least 10 years.
If you've been using Paypal for years, at some point you may have wanted to toss your computer across the room after speaking to one of their horrible customer service reps. In shocking fashion, the jig is apparently up for the shady folks over at Paypal and now they have to refund $15 million dollars to customers in addition to $10 million in fines to the Consumer Financial Protection Bureau.
Gizmodo has the scoop:
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.
Welp! We'll be keeping our eye on this case to see if we are coming up on any of that $15 million refund to customers. Stick with TSG as we continue to update you on this lawsuit with Paypal.
Source: Consumer Finance