Paypal has given my item away and my money

Trader775
New Community Member

I sold a used Samsung S5 on ebay clearly marked no returns. The buyer held funds until he could verify the item sent. The buyer released funds after 2 days of receiving the item. The buyer held my phone for 22 days after purchase and then wanted a refund because he said the phone was stolen and he could not register the item. I informed the buyer I am the original and only owner of the phone and I would be glad to call AT &T for him. The buyer refused and said he had a letter from AT&T that the phone was reported lost or stolen and they would not connect it. I informed the buyer to send me a copy of the letter and I would refund his money. The buyer said he lost the letter but wants a refund. I refused. The buyer opened a case on ebay for a refund. The buyer lost. The buyer then opened a case on paypal. Paypal sided with the buyer without seeing any letter from AT&T and without telling the buyer to return the phone paypal refunded the money to the buyer and wants me to pay the refund and allow the buyer to keep the phone. I informed paypal I purchased the phone 5 years ago and am the only owner and if the buyer can give me a letter from AT&T stating the phone is lost or stolen I would refund the money. Paypal stated that i need to send in a copy of my original receipt from 5 years ago to prove the phone is not lost or stolen otherwise the buyer gets to keep the phone and I have to refund the money. Can someone tell me how to get this situation corrected. it's crazy that paypal is requiring me the seller (without the phone) to prove the phone is NOT LOST OR STOLEN. I even told paypal if the buyer even gives me the serial number i will call AT&T and get proof phone is not stolen or lost. paypal will not require the buyer to give me the phone or any information about the phone and will continue to debit my account $66.95 unless I can provide original receipt or letter from AT&T stating the phone is not stolen. 

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merline61
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