FC: Louisiana government accuses Paypal of running unauthorized bank

[Declan McCullagh <declan () well com>]

http://news.com.com/2100-1017-834313.html

   By Troy Wolverton 
   Staff Writer, CNET News.com
   February 11, 2002, 5:45 PM PT

   [...]
   
   In a letter sent last week, Louisiana asked the online payments
   company to cease offering its service to the state's residents until
   PayPal receives a license from the state, the company said in a
   regulatory document filed Monday. Although Louisiana residents account
   for a small fraction of the money sent through PayPal, the state's
   move could presage other governmental attempts to regulate PayPal's
   service.

   [...]
   
   But PayPal also faces potential challenges from state banking
   regulators. During the past two years, California and Idaho have
   questioned whether PayPal is operating an unauthorized bank.
   Meanwhile, officials in Louisiana and New York have gone a step
   further and stated their opinion that PayPal is doing just that.

   [...]



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