Fine Print Alert: CFPB to Fine PayPal & Spike in ATM Fraud

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Updated on Friday, May 22, 2015

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In our weekly Fine Print Alert we call out news from the financial community and shine a spotlight on any sneaky changes in the fine print. We also share our favorite reads from the week.

FINE PRINT ALERT

CFPB Seeks to Fine PayPal $25 Million…

Some PayPal users have been unknowingly signed up for lines of credit with the company after signing up for regular PayPal accounts. Customers complained that they never meant to opt into a line of credit (formerly called “Bill me later”) and only discovered it happened via welcome emails or inquires on credit reports. The CFPB is looking to fine PayPal $15 million in refunds for consumers and a $10 million penalty.

PayPal users would shop online using PayPal for payment not realizing it was defaulting to PayPal credit instead of checking accounts or credit cards linked to the account.

Find additional details here.

Debit Card Fraud at ATMs Reach an All-Time High… 

Your debit card isn’t safe. In fact, it may be your most vulnerable financial point. The highest number of attacks on debit cards swiped at an ATM occurred from January to April 9, 2015. This is the highest level for that period in at least 20 years. Attacks on nonbank ATMs (like on the mall or convenience store) rose 317%. But even ATM machines inside banks are no longer safe with attacks rising 174%. Once your information gets swiped, thieves can gain access to your checking account and take out money before you realize what’s happened.

This is just one reason we advocate to primarily use a credit card if you’re going to swipe a card and if you need cash, only use a bank ATM.

Read: Debit Card vs Credit Card — Which Should You Use?

MAGNIFYMONEY IN THE NEWS

FAVORITE READS FROM AROUND THE WEB

Money Minute: 3 Reasons Money Isn’t Making You Happy Research has proven that spending money on stuff won’t make you happy in the long term. We get used to having the latest iPhone or fancy diamond earrings and over time the satisfaction they bring us fades. Mandi Woodruff shares three reasons why money isn’t making you happy in this week’s installment of Money Minute on Yahoo! Finance

The Best Money Advice My Dad Ever Gave Me Especially when you’re young, you need to be willing to take risks. Whether it’s moving to a new city or investing in stocks for the first time, doing something new may be scary, but it might also offer the greatest rewards. The trick is to have a well-devised plan. And remember: If you fail, your youth affords you plenty of time to recover. Stacey Rapacon shares 7 money lessons from her father on Kiplinger.

Top Then Things We Learned from David Letterman About Money David Letterman was always his own man. In the warring-with-Leno years, if he’d once attempted to be a “me too” version of The Tonight Show it never would have worked. His career was long because he didn’t compare himself to the Joneses. He won Emmys because he didn’t compete. Average Joe of Stacking Benjamins shares 10 money lessons learned from watching David Letterman.

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