[CO1]

http://www.mercurynews.com/business/ci_24835552/paypal-steps-up-small-business-lending

[Benchmark]

I found this paragraph quite interesting:

"The eBay SEC filing reveals little about CFPB's civil investigation. But the filing does mention a class-action lawsuit that alleges the company has been evading state consumer-protection laws by "renting" a bank charter to extend credit through the Bill Me Later service. The lawsuit, initially filed in California and moved to a Utah court, outlined examples of consumers who were charged rates ranging from 41 percent to 115 percent through the service. "

[Chambo]

hmmm....how long does it take for an overzealous lawyer to start creeping around looking at other companies?

[Sean Cash]

hmmm....how long does it take for an overzealous lawyer to start creeping around looking at other companies?

you are ever the pessimist. That lawsuit is about consumers.

[Chambo]

I'm sure AMI and REWARDS said the same thing in California...how did THAT turn out?

[Sean Cash]

California has its own rules. Everybody should be conscientious of them.

[MCAVeteran]

You are correct on the pending litigation

http://www.ecommercebytes.com/cab/abn/y13/m10/i23/s04

[Chambo]

Bill Me Later, which eBay absorbed in 2008 through a PayPal acquisition, has previously come under fire for charging deferred interest and is fighting a lawsuit in Utah, where its current and former issuing banks are chartered.

[Chambo]

Separately, eBay, PayPal and Bill Me Later are fighting a lawsuit in which the plaintiffs alleged that Bill Me Later operates as a money lender, and, in that capacity, violates California's usury law and other statutes. WebBank, Bill Me Later's former issuer, joined the case as an intervenor in September 2011, and the case was transferred to Utah the following month. eBay and WebBank filed a motion to dismiss the case in March 2012, and a hearing on the still-pending case was held in September of that year.

[Chambo]

Separately, eBay, PayPal and Bill Me Later are fighting a lawsuit in which the plaintiffs alleged that Bill Me Later operates as a money lender, and, in that capacity, violates California's usury law and other statutes. WebBank, Bill Me Later's former issuer, joined the case as an intervenor in September 2011, and the case was transferred to Utah the following month. eBay and WebBank filed a motion to dismiss the case in March 2012, and a hearing on the still-pending case was held in September of that year.

"We believe that plaintiffs' allegations are without merit and intend to defend ourselves vigorously," eBay said in its filing with the SEC. "However, this area of law is uncertain and if the lawsuit is successful, Bill Me Later may be required to change its methods of operations, pay very substantial damages and reduce some of its charges and fees, which would adversely affect our business."

[Sean Cash]

consumer loans......

[Chambo]

We'll see. This is part of the by product of "all this exposure and legitimacy" some people are dancing about.