PayPal Updates Its Terms Of Service, Upsets Users

PayPal is scaring its customers with the company’s updated terms of service agreement. The new terms are set to go into effect July 1, but have already succeeded in angering the internet.

The new terms of service apparently will give PayPal the authorization to robocall and robo-text its customers. Users of the payment service have expressed their concern over the upcoming policy change. You can read the entire updated terms on PayPal’s website.

“You consent to receive autodialed or prerecorded calls and text messages from PayPal at any telephone number that you have provided us or that we have otherwise obtained. We may place such calls or texts to (i) notify you regarding your account; (ii) troubleshoot problems with your account (iii) resolve a dispute; (iv) collect a debt; (v) poll your opinions through surveys or questionnaires, (vii) contact you with offers and promotions; or (viii) as otherwise necessary to service your account or enforce this User Agreement, our policies, applicable law, or any other agreement we may have with you.”

Unlike most companies, PayPal doesn’t seem the least bit worried about losing any of its business. As BGR reported, a concerned PayPal customer reached out to the company through their Facebook page. The customer asked if there was going to be an opt-out process. PayPal responded and said that an opt-out process would not be available for all aspects of the new terms. The company went further and gave directions to the customer for closing his account.

The extremely popular online payment processing service just recently agreed to pay $25 million in fines for deceptive business practices in an unrelated incident. The legality of the new user agreement is not yet clear. As notes, companies must first receive the person’s oral or written permission before robocalling them.

For now, PayPal doesn’t seem to care about its customers’ concerns. The only way to fully opt-out of the robocalls is to close your account altogether. PayPal contacted after their story was published and asserted that they are acting within the law.

“PayPal takes consumer protection very seriously and we have processes in place designed to ensure compliance with all collection laws.”

Many companies have retracted or modified parts of their terms after the public demanded it. Linkedin, for instance, was accused of improperly using its users’ data and after outcry, changed its policy. PayPal still has plenty of time to be talked into changing its new policy before it takes effect on July 1.

[Image by Sean Gallup / Getty Images]