GE Capital
Applied for Credit Card but Received Line of Credit Instead

A couple of months ago (May, I believe), I applied for a PayPal MasterCard through my PayPal account. After entering all of the requested data, I was sent to a page telling me I had been approved and that I would be receiving an email with instructions on how to submit a photo for use on the card. Within a week, I had received a notice from GE Capital that the amount (not form) of credit issued had been adjusted downward. I had used an email account that I don't check very often and didn't think much of it.

A couple of weeks later, I made some online purchases and noticed that I had a new payment option for SmartConnect, and it was popping up as the default option. I went into my PayPal settings and set my default back to my debit card. I had figured that the card was "Connected Smartly" to my PayPal account. Fast forward to August, and I start making purchases again. PayPal re-defaulted my payment type to SmartConnect, and I made purchases on it without realizing it, as well as not realizing that I had a new bill to pay. I finally got access to the email account I used for the application and saw nothing about the MasterCard I was approved for. I called the main toll-free number on the PayPal site and explained the situation. The gist is this: I applied for something, was approved by all indications, did not receive a rejection letter, and was issued a line of credit instead. Charges were erroneously made to the wrong account, and I wanted them to fix it, apply the charges to the (automatic) payment type I had set up, and remove the SmartConnect line of credit from the account.

They tell me that the account is removed, but that I have to call PayPal to redirect the charges since they are GE Capital. What? That is who I dialed. Furthermore, you answered the line as PayPal. Whatever... Before removing the account, they try to tell me how great it is to have it and how I need it because it does the exact same thing as having my debit card on PayPal does. Again, whatever... They are missing the point that I applied for a credit card and received a line of credit.

Now this is where it starts to get shady. They tell me that it is a card because they sent me a paper card. Notwithstanding the fact that it can only be used at PayPal/eBay, it is printed on card stock, so it counts as a credit card. Not to mention I never received this "paper card." OK, enough, back to PayPal. I call the same number and now I'm talking to PayPal, funny that.

I can't quite leave it alone because I have a balance on a line of credit that I did not request, and it was placed, so I would accidentally use it eventually and make them some money. This is where motive comes into play. If you use a MC/Visa/etc. on PayPal and make a purchase, they have to pay a transaction fee to their credit card processor. But if they trick you into using the line of credit, it doesn't go through a credit card gateway, and because they referred the business to GE Capital, they get paid for you using it.

So, here is my immediate problem. I have a balance that I have no way to pay as my account stands. You can't pay it electronically unless you give your banking info to PayPal. They won't process the payment off of a debit card on the account, because then they have to pay a transaction fee and it eats the money they just made from you for using the line of credit in the first place. I have no account information for the GE account, and PayPal disconnects me when I request a number or transfer to GE. I really shouldn't have to go through all of this mess to address their unethical business practices.

I guess the real moral of the story is don't trust an online payment company that won't accept their own service for making payments.

Company: GE Capital
Country: USA
Site: paypal.com

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