PayPal Holdings was slapped with a consumer class action Tuesday in California Northern District Court over its 'Pay in 4' buy now, pay later service. The suit, brought by KalielGold PLLC and Edelsberg Law on behalf of users charged overdraft fees, claims that PayPal markets the offering to cash-strapped customers and fails to disclose the risk of incurring significant fees. Additionally, the complaint accuses PayPal of operating the service in a way that compounds overdraft charges. Counsel have not yet appeared for the defendant. The case is 5:22-cv-01283, Felipe v. PayPal, Inc.
Banking & Financial Services
March 01, 2022, 7:04 PM