I am extremely concerned that my ISP collects any information once I am connected to a VPN server. For instance, as far as I know, when I start a connection to a HotSpotShield VPN server, an IP address is assigned to me just before a successful connection. Besides, I'll be having an extra IP address at the beginning with the TAP Adapter. An encryption tunnel is set up between me and the VPN server. Whenever my request for a website reaches them (VPN server), they decrypt the data and later they encrypt the reply which returns from the web (targeted) server. This works like that. So, the ISP can not see what I am watching, displaying and writing because the connection is encrypted. But, the targeted websites see and record all actions. Still, they can not identify my real IP address.
I'm really concerned about if the ISP can see "my location". OK, it has an IP address from another country as my real IP address, but how does my ISP detect the traffic going through them? Can they find out who I am? Won't they say "Hey, there is a traffic but who is and what he is doing right now?", because I get the Internet from them?