GE Capital PayPal Apply for a PayPal Mastercard, get approved, then get a GE Capital Line of Credit instead Internet

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 recieved 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 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 in to 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 get access to the email account I used for the application and see nothing about the MasterCard I was approved for. I call the main tollfree # 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 and apply them to the (automatic) payment type I had set up, 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 having my debit card on PayPal does..... Again, Whatever... They are missing the point that I applied for  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, its 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 was placed so I would accidentally use it eventually and make them some money. This is where motive comes in to play. See, 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. See 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.