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

Related: BillMeLater Draws Federal Scrutiny http://www.bloomberg.com/news/2013-10-22/ebay-probed-by-regulator-over-loans-pioneered-by-payday-lenders.html http://www.bloomberg.com/news/2013-10-22/ebay-probed-by-regu... EBay Inc. (EBAY) is facing a probe by the Consumer Financial Protection Bureau over a loan program that mimics a structure used by high-interest lenders to evade state rules before the practice was stamped out by regulators. The program, called Bill Me Later, is a service of the online marketplace’s PayPal unit that relies on Salt Lake City, Utah-based Comenity Capital Bank to make loans that are then purchased and managed by EBay, according to regulatory filings. Under federal law, banks can lend in any state without being licensed there, or complying with local interest rate caps. <and> In 2008 EBay acquired Bill Me Later, which also lets users finance purchases in online markets run by Wal-Mart Stores Inc. (WMT), The Walt Disney Co. (DIS) and Apple Inc. (AAPL) Customers can avoid the annual 19.99 percent rate by paying off the loan before the end of a six-month promotional period. If they pay later, they incur accumulated interest and fees that effectively raise the annual rate.