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Bill Me Later? Be Careful

Have you ever shopped online and seen the option “Bill Me Later?”  This could be a mechanism to avoid state a federal lending laws much like high interest rate payday loans.  In a federal probe, the Bill Me Later feature on Ebay was found to be a service through PayPal where a loan was created through the Utah based Comenity Capital Bank.  This loan was then purchased and managed by Ebay.  Thus, consumers being billed later had actually created a loan.

http://www.bloomberg.com/news/2013-10-22/ebay-probed-by-regulator-over-loans-pioneered-by-payday-lenders.html

This loan had a 19.99% annual interest rate, and if paid in longer than six months had interest rate hikes and penalty fees that elevated the amount due.  The resulting amount due was often much higher than if the consumer had just made the purchase on the average credit card.

If you are in debt to an internet vendor and having trouble making payments contact a qualified debt settlement attorney.  A qualified debt settlement attorney can cut through these predatory lending practices and reduce the principal balance owed on a debt.  Sophisticated lending schemes like this require qualified legal expertise, and a debt settlement attorney is the right choice for consumer protection.