PayPal Consumer Loan Complaint

PayPal Consumer loan department,

Installment loan Taking out the loan or lease California

I attempted to make a payment through PayPal as the public agency I was paying said they only took PayPal payments. I have a PayPal account I never use so I went to it and assumed my payment would either be directly from my checking account or from the credit card I have on file. Instead they established a credit account in my name that I DID NOT REQUEST and then proceeded to do an unauthorized hard inquiry on my credit report. I called them and they did quickly charge my credit card and cancel the line of credit they had established. My sense in talking to their agent was that PayPal clearly recognized that what they did was unauthorized, but said they could not erase the hard inquiry. They were doing exactly what the CFPB and PayPal reached an agreement that they cease doing and for which they paid an inadequate fine. They claimed I authorized the credit account as it was hidden somewhere in the agreement I made when I authorized the payment. It was completely unclear to me that that was what I was doing or that that was their intention. It is clear, however, that they set up their system so it automatically creates a credit line so when you think you are paying directly with PayPal you are in fact establishing credit with them. Your fine is obviously inadequate since it is clear that this business is profitable enough that paying the fine is just a cost of doing business and not a disincentive for dishonest activity. Thank you.