PayPal will pay $25 million for allegedly signing customers up for its credit products without permission, $10 million to the Consumer Financial Protection Bureau (CFPB) and $15 million to consumers, the bureau announced today.

PayPal is accused of deceptively advertising promotions it does not honor, and pushing customers into its credit products without proper notification. PayPal indicated it is working to improve its processes.

The news is slightly ominous for PayPal as the company prepares to spin off from parent eBay in the third quarter.

A PayPal Credit offer letter obtained by Bank Innovation describes the onboarding process in this way: “To take advantage of this offer, simply place your on-line order with a merchant that accepts PayPal Credit for an amount not exceeding your pre-approved limit.” This certainly leaves room for potential confusion. Could the person placing an order on such a site be enrolled in PayPal Credit without knowing it? That is the implication of the CFPB action.

“PayPal illegally signed up consumers for its online credit product without their permission and failed to address disputes when they complained,” CFPB Director Richard Cordray said today. “Online shopping has become a way of life for many Americans and it’s important that they are treated fairly. The CFPB’s action should send a signal that consumers are protected whether they are opening their wallets or clicking online to make a purchase.”

Under the terms of its settlement, PayPal must pay a $10 million fine to the CFPB civil penalty fund, refund $15 million to customers allegedly affected, and improve its disclosures to consumers about PayPal Credit, formerly Bill Me Later.