Received this in an email from paypal. What are they up to? The smileys were not from paypal they just appeared when i pasted it on here!

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 PayPal
On 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 2 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 Policy
We 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.

They've just changed banks according to that, can't see anything sinister about it. I've had the same email and it's come to the one I have registered with them and doesn't require any action on my part so what's the problem?

I received it twice....

Just moving to Luxembourg by all accounts (no pun intended) obviously not making enough money! ASIF

Steve

I know its a genuine email and nothing sinister but it must be of some advantage to them. Its not realy a problem Just wondered why!

15% VAT tax as opossed to 17.5?

I suspect that the financial regulation may be a little less stringent too ...

Ebay is based there as well

They are changing into a Bank and not just a payment acceptance company, according to BBC news yesterday.

I think it's probably a good thing.

The UK tax man and FSA is probably at them all the time to produce details of financial transactions for people they are investigating.

This is probably a massive administrative burden and theyand hence us will get a quieter life with PayPal being based in Luxembourg

I haven't used paypal in months, if not years. Do you really think that cost savings and lower taxes will mean lower charges to their customers - I dont' think so, they will just increase their profit margins.

Ned.

takes way to long to transfer money

direct debit should arrive to your bank within 2 days max

afterall its took out that quick

I'll never use them again

"and set out further details of the third parties to whom PayPal Luxembourg will disclose your personal and account information." ?

We have just had a mail from them as we are nearing £4.5k paid in, whats the crack, have heard mention of it before ?