I was a PayPal customer for years with a linked bank account and credit card. PayPal signed me up for a phantom "line of credit" without my knowledge or authorization through "Smart Connect," a cover for GE Money Bank, which issues credit at a usurious interest rate of over 26%, exorbitant late fees, and other charges.
PayPal forces Smart Connect as a default. If you are not vigilant and paying attention every time you make a purchase, you end up using "Smart Connect" instead of your linked bank account! No bills are sent. I had no knowledge of the 30 dollar charge in January until April, when GE's shark started calling. One month later, the $30 charge was now $109.28 with late fees, interest, and other charges.
I did not remember PayPal signing me up for a credit service. When I called, they told me PayPal Smart is totally different from regular PayPal, however those two services are 100% connected to each other using the same operation.
I was not aware that I was using PayPal Smart Connect rather than PayPal until the late fees, which amounted to 3x my original charge.
I believe this is pure deception: I was signed up for a line of credit with an extremely high interest rate and high fees without my acknowledgment, and it was also a very explicit attempt to force/scam me into using such an unethical practice, which in the end causes customers great harm without their even knowing about it.
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