The CFPB has proposed that PayPal refund $15m to customers and pay a $10m civil penalty to settle allegations that it engaged in a series of deceptive business practices with its PayPal Credit product, formerly known as Bill Me Later. Federal regulators allege that PayPal signed up customers who didn't want PayPal Credit accounts, failed to honor promotional offers, unfairly steered customers to use the product, and let fees pile up while mishandling billing disputes. The CFPB made the allegations and proposed the settlement in a lawsuit filed in a Maryland federal court this week. Among the more serious claims: that PayPal often charged late fees and interest on balances with pending disputes, "even when the disputes concern defendants' own practices, including failing to reverse a charge associated with double billing through PayPal Credit or failing to process a refund..."

http://www.businessinsider.com/paypal-is-facing-a-25-million-lawsuit-for-allegedly-deceiving-its-customers-2015-5