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psunite
Joined: 27 Jan 2005
Posts: 6213
Location: Columbus OH
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| Posted: Fri Jan 15, 2010 12:53 am Post subject: Bill Me Later hit w/class-action lawsuit over interest rates |
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Bill Me Later is facing a class-action lawsuit claiming the online sales processor skirts California consumer protection laws to hike its interest rates.
Kyle Sawyer, a Bill Me Later customer in Torrance, Calif., filed the lawsuit Jan. 6 in U.S. District Court for the northern district of California. The complaint accuses Timonium-based Bill Me Later, a subsidiary of online auctioneer eBay Inc., of using a middleman to avoid California law prohibiting exorbitant credit penalties and interest rates.
The lawsuit seeks refunds of unjust fees and cancellation of loans for Bill Me Later customers in California. It also asks Bill Me Later and eBay to pay damages equal to three times the interest it charged Sawyer and any additional plaintiffs who join the lawsuit.
Bill Me Later is an online payment processor that Internet retailers use to boost sales. When making a purchase online, consumers who choose to use Bill Me Later undergo an instant credit check by the company, which it uses to decide whether to approve or deny the sale. If approved, Bill Me Later then foots the bill for the purchase and charges the customer like a credit card company would.
The lawsuit argues that Bill Me Later evades consumer protection laws because it isn’t a chartered bank or other financial institution. If it were, it would be subject to consumer protection laws limiting interest rates and penalty fees.
more.. link to news article |
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DaLizardsLair
Joined: 15 Feb 2009
Posts: 4780
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| Posted: Fri Jan 15, 2010 1:28 am Post subject: |
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I find it funny that eBay and Paypal want to assume all the advantages of being a bank, without taking on any of the responsibilities.
I'm surprised that they never applied for TARP money.
I hope that Kyle wins big. |
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goldenlady
Joined: 09 Sep 2009
Posts: 406
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| Posted: Fri Jan 15, 2010 1:48 am Post subject: Re: Bill Me Later hit w/class-action lawsuit over interest r |
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I hope that the plaintiffs win this one also.
40 to over 100% interest?
I hope that BML is also charged with rape (if you know what I mean).
That interest rate is completely ridiculous! |
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Patty00
Joined: 13 Dec 2005
Posts: 1018
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| Posted: Sat Jan 16, 2010 10:16 pm Post subject: |
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| I wonder if the outcome of this will have an effect on Paypal. They seem to be very unregulated to me...do whatever they please. I'd like to see both of them get a foot on their neck! |
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northernstars
Joined: 20 Feb 2008
Posts: 132
Location: USA
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| Posted: Wed Feb 03, 2010 9:08 pm Post subject: |
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It's not just their BML division that's pulling stunts like this,
it's even worse what Paypal is doing and I'm not talking
about the 21 day holds.
If you're thinking about using them on your own website,
be careful or you could end up like the merchants in the
comments section in this news article.
It's absolutely shocking that they are doing this.
Hundreds of thousands of dollars yanked out of accounts
and put into rolling reserves and many times without an
advance warning.
They're putting merchants small and large out of business daily.
http://www.businessweek.com/smallbiz/running_small_business/archives/2009/08/paypals_reserve.html |
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DaLizardsLair
Joined: 15 Feb 2009
Posts: 4780
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| Posted: Wed Feb 03, 2010 9:38 pm Post subject: |
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| Yet Best Buy accepts Paypal. |
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