PayPal has just recently been indicted for malpractices when they enrolled customers into credit programs without their consent or knowledge. This made the customers responsible for the credits on their account they never really asked for. Credit programs have an impact on your credit scores and the Consumer Financial Protection Bureau alleges that PayPal used deceptive advertising to attract customers who signed up for the program without knowing about it. This led to billing disputes which is being taken seriously by the bureau. The proposed penalty for this action includes paying back $15 Million to its customers that have been wrongly charged and also pay $10 Million the government to make sure that PayPal has learnt its lesson.
Young consumers not pro-credit
Credit has been one of the biggest problems that have plagued the western society for years. However, since the Global meltdown, the consumers prefer to not use credit if possible, the study suggests. Younger generations are sceptical about taking credits from the bank and then losing it to mortgage. These instances have been pretty common in 2000s and the generation was quite aware of it the whole time, understanding the pitfalls of financial systems.
So what is the solution?
Life without credit cards can be tricky but it is also comforting to know that you don’t owe anything to anyone. However, another workable solution to the credit problem, without sacrificing the quality of your life, is bitcoins. There are millions of people using it already in remittance and now even in transactions.
There has certainly been an increase in the number of businesses that accepting bitcoins for payment. There is already a solution to this in place that the businesses are allowed to lock the value of their bitcoins without feeling the need to dump them in the market.
Crypto-currency creates value of money between both the exchanging parties with no middle men involved in the transaction. This is the reason the network is referred to as peer-to-peer. Since the system itself doesn’t run for free, it is definitely an expensive one. However, you as a party are not responsible for any of its expenses. Your money will be safe and the Bitcoin network is supposed to impregnable.
So, it is up to you if you would like to side with usurping service providers like PayPal or place your faith in an unbeatable Bitcoin Network.