PayPal Prepaid Card Complaint

PayPal Prepaid card department,

Mobile wallet Fraud or scam California

On - -, 2015 I made a purchase on -. I went through paypal to make the payment with my credit card on file. On - -, 2015 I received a notice that paypal had ran a credit check on me which I did not request or authorize. On - - I received an email from Paypal Credit saying that they had approved a credit line for me for $1200.00 Again, I never knowingly applied for a credit line. Why would apply for a credit line for a $38.00 purchase that I could use my credit card for? I called paypal through - to report fraud today, - - and paypal told me it was for my purchase on toyrus.com and they would immediately close my account. They claimed that I would 've had to go through the process of filling out an application for an account which I never did. I still have to go through the process of paying the balance because they would not take credit card payment, they would only take a bank account payment so I have to wait for them to send me a paper statement.