Feds Investigating Debt-Collection Activities by PayPal's Venmo
PayPal Holdings' (NASDAQ: PYPL) popular Venmo service is the target of an investigation by the federal government. In a regulatory filing the company submitted on Friday, it revealed that the Consumer Financial Protection Bureau (CFPB) sent it a Civil Investigative Demand requesting information, particularly about Venmo's debt collection practices.
The CFPB is concerned about PayPal's conduct toward Venmo users who end up owing the company for certain transactions that go wrong, and on occasion for accounts that fall into negative balances. According to media reports, such users have been threatened by Venmo/PayPal that it would sic debt collection agencies on them.
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Source Fool.com
