If a lender loans a borrower say $150 for the borrower to repay $250 in 3 weeks (very high/illegal interest rate) via PayPal G&S, and it turns out that the borrower refuses to repay the loan, what will PayPal do?

The lender can obviously file a chargeback/dispute saying Item Not Received, but will PayPal give the refund or say that the loan interest rate was too high and refuse refund? Will signing a loan contract beforehand help or hurt the situation? The tricky thing is that the interest rate is illegally high.

  • 1
    Ask PayPal? They should know
    – Trish
    Feb 3 at 23:47
  • Have you reviewed the PayPal TOS?
    – ohwilleke
    Feb 4 at 1:10
  • 1
    What will PayPal do is not a question of law. How should they properly handle it according to their TOS and contractual law might be, but how will they would involve knowing whether or not they'd even do that.
    – Alan
    Feb 4 at 1:48


You must log in to answer this question.

Browse other questions tagged .