Citing concerns raised in an earlierby the Student Borrower Protection Center, tapping other types of credit and debit — beyond federal and private student loans — to cover educational expenses is contributing to a growing problem of "shadow student debt," the consumer groups also said.
We have already begun taking action against some of the entities mentioned in the letter that have been found to be using inaccurate or misleading messaging/characterization of our products."If an organization is found to be using inaccurate or misleading messaging or characterization about PayPal Credit products without our prior knowledge or consent, we will quickly move to terminate the use of our services," PayPal's Gallo said.
Further, the consumer groups took issue with PayPal Credit's fees and "deceptive" introductory no-interest offer, which allows borrowers to defer interest for the first six months.
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