PayPal settles for $150,000
p2pnet.net News:- PayPal admits it misled people into believing it offers credit-card-style protection and has told New York State attorney general Eliot Spitzer, that it will in future "be more open with the exact level of protection it offers its 25 million customers".
It’s up against investigations in several states, as well as the the Federal Trade Commission.
"No details of these cases are available, but eBay said they related to its ‘restriction and disclosure practices’ – in other words, probably the same areas as the New York case," says a BBC report here.
"PayPal has aroused considerable criticism from eBay’s army of users, however. The main complaint is that the firm is wont to freeze accounts it considers suspicious, often for months on end. Some users allege that this practice gives PayPal unfair use of clients’ money."
Last year, transactions worth more than $12bn passed through PayPal, which is by far the biggest online payment processor, says the Beeb, adding, "EBay bought PayPal in 2002, and is keen to push as many deals as possible through the system".
PayPal has agreed to pay $150,000 to settle the New York case.
