PayPal Holdings, Inc. (PYPL) is Being Investigated by the SEC and Consumer Financial Protection Bureau
PayPal executives hid the fact that its business, operations, and compliance policies were not in line with state and federal laws and regulations, leading to an investigation by the SEC and Consumer Financial Protection Bureau (“CFPB”), and a drop in the company’s stock price. On July 29, 2021, PayPal filed a quarterly report with the SEC disclosing the ongoing investigations and revealing it had received a “Civil Investigative Demand” from the CFPB related “to the marketing and use of PayPal credit in connection with certain merchants that provide educational services” and subpoenas and information requests from the SEC related to interchange rates of its debit cards and the marketing fees it earns from its card programs. On this information, the company’s stock price fell $18.81 per share. This isn’t the first time PayPal has been called out. In 2015, PayPal settled regulatory claims with the CFPB over some of its credit card business practices and has repeatedly asserted since then that it has been remediating the disputed issues.
PayPal, Inc. (PYPL) shareholders have legal options.
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