PAYPAL CHANGE USER AGREEMENT

Every Paypal 'customer' should have received a email stating that they have changed their user agreement, but more worrying is the fact that they will NO LONGER BE REGULATED BY THE FSA (Finacial Services Authority)

This is very worrying to say the least the FSA regulates all the banks in the UK and most other e-money companies. The fact that they have moved to a Luxembourg based company is a little worrying as they are clearly trying to side-step certain regulations...

Here is a copy of the email:

"Dear XXXXX XXXXXXX,

We would like to announce important developments affecting all PayPal accounts in the European Union (the "EU").
No action is required on your part, and you will be able to continue using PayPal with no changes.

Currently, PayPal (Europe) Ltd. is the service provider for PayPal in the EU. PayPal (Europe) Ltd. is a UK company regulated and authorised by the Financial Services Authority (FSA) in the UK as an electronic money institution. This authorisation enables PayPal to provide its service throughout the EU.
From 2 July 2007, a new PayPal company, PayPal (Europe) S.à r.l. & Cie, S.C.A.

(PayPal Luxembourg), will become the service provider for PayPal in the EU. This is a Luxembourg entity regulated as a bank by the Commission de Surveillance du Secteur Financier (CSSF), the Luxembourg equivalent of the FSA. PayPal Luxembourg will provide the PayPal service throughout the EU.
Your customer relationship with PayPalOn 2 July 2007, your customer relationship will be automatically transferred from PayPal (Europe) Ltd. to PayPal Luxembourg. This includes your customer relationship as governed by the terms of the PayPal User Agreement and, for applicable UK merchants, the PayPal Website Payments Pro Agreement (collectively, the "Agreements").

To summarise, from 2nd July 2007, PayPal (Europe) Ltd. will assign to PayPal Luxembourg all of its right, title, interest, and benefit in and to the Agreements.
New User Agreement and Privacy PolicyWe are also pleased to announce that from 2 July 2007, PayPal Luxembourg will issue a new form of the PayPal User Agreement and Privacy Policy. This new version of the User Agreement will be presented in a much more user-friendly manner, and many of the policies currently accessed by hyperlinks, will now form part of the main text of the User Agreement.

Also, the Privacy Policy will reflect that PayPal Luxembourg will be the data controller of your personal information from 2 July 2007 and set out further details of the third parties to whom PayPal Luxembourg will disclose your personal and account information.
For more information about the transition to PayPal (Europe) S.à r.l. & Cie, S.C.A. click here.

If you do not wish to continue your relationship with PayPal, you may close your account at any time by logging in to your account, clicking Profile, and following the instructions from the "Close Account" link. You should make sure you first withdraw the outstanding PayPal balance to your bank account.
Yours sincerely,
PayPal (Europe) Ltd."

Yet more reasons not to accept Paypal!!

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