PayPal Inc. will cough up $25 million for allegedly signing up and billing thousands of consumers for its credit services without their knowledge, according to a consent order filed by the U.S. Consumer Financial Protection Bureau in federal court in Maryland Tuesday.

PayPal allegedly deceptively advertised and signed up consumers for its credit service, PayPal Credit, without their consent, and mishandled subsequent billing disputes, the CFPB said. Under the bureau’s proposed order, PayPal would return $15 million in allegedly ill-gotten gains and pay a $10 million fine for its actions.

PayPal is represented by Robert A. Scott and Christopher Willis of Ballard Spahr LLP.

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Consumer Financial Services