Pay Pal Fined

[admin]

A number of visitors here have expressed they use Pay Pal. I thought this may be of some interest.

ALBANY, New York (AP) -- The nation's largest online payment service, PayPal, is paying New York $150,000 in penalties after misrepresenting to consumers its policy on repayment when merchandise doesn't arrive, the state attorney general said Monday.

PayPal, which claims 40 million customers worldwide, had specifically stated that it provided the same rights and protections of a traditional credit card transaction, said Attorney General Eliot Spitzer. But consumers were often denied those rights, he said.

For example, consumers who didn't receive merchandise purchased through PayPal were often denied reimbursement from either PayPal or American Express or Discover credit cards. A spokeswoman for Spitzer said consumers complained they were being bounced between PayPal and their credit card companies and there was no prompt action.

The credit card firms agreed to properly credit consumers in an agreement with Spitzer late last year.

PayPal creates accounts for buyers and sellers using the Internet, including PayPal's parent, eBay, the Internet auction site. The service lets buyers and sellers exchange money through e-mail.

Besides the penalties, PayPal will pay New York state the investigation costs. The online payment service also will clearly describe consumer rights including conditions or limitations on their rights and refund policies.

Without the agreement, consumers using their credit cards through "e-payment" systems like PayPal would lose their protections under the federal Fair Credit Billing Act and similar state laws.

"Protecting consumer rights in online transactions is the best way to establish and maintain confidence in electronic commerce," Spitzer said.

PayPal has clarified that it will investigate any claims about a deal as long as the complaint is made within 30 days of the purchase.

[jnbass]

I was one of those that was defrauded by Paypal.

[rob]

This is why I will NEVER use a credit card over the internet. Even though, I understand that this garbage could happen with sending a Certified Check, for example.

[doctorwho]

If credit card fraud actually cost the credit card companies lost revenue, do you think that they would let it continue? They pass the losses off to consumers and insurance companies (who then pass it on to other policy holders).

It's also why credit card companies send all those unwanted junk mailings - if the cards get stolen and used, the companies aren't the ones to suffer, it's the poor guy whose name is on the card and is then dragged through the financial mud. The credit card companies are complicitous in ALL credit card fraud because there is no penalty for them, only financial reward!!

(Venting hass been completed.}