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ARTICLE · 22 APRIL 2015

CFPB Targets PayPal’s Consumer Lending Service

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In a recent filing with the Securities and Exchange Commission, eBay's PayPal division disclosed that it could be hit with an enforcement lawsuit by the Consumer Financial Protection Bureau (CFPB)...

United StatesConsumer Protection
Darren William Stanhouse
Darren William Stanhouse
Joshua Davey
Joshua Davey

In a recent filing with the Securities and Exchange Commission, eBay's PayPal division disclosed that it could be hit with an enforcement lawsuit by the Consumer Financial Protection Bureau (CFPB) as early as the second quarter of 2015. The potential suit arises from CFPB inquiries into PayPal Credit, the company's consumer lending service formerly known as Bill Me Later. According to PayPal's filing, the CFPB served Civil Investigative Demands on the company in August 2013 and January 2014 seeking information related to PayPal Credit products, "including online credit products and services, advertising, loan origination, customer acquisition, servicing, debt collection, and complaints handling practices."

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