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I too, am totally disgusted with the lack of help I have had from Paypal. What has happened to you sounds like exactly what I have been going through and after many messages to the Paypal Customer Service, I am not getting any replies. I have had my money taken by a Chinese scammer and have received a very small lens cleaning cloth for glasses, instead of a Waldorf Doll with clothing set, which cost me $57.98 USD. I am in Australia and had made the purchase for my granddaughter for Christmas. I live on a disability pension and start buying for Christmas well before, but this purchase has cost me so much more than I can ever afford, now that I have lost all my money and have only received a very small piece of cloth. The Chinese people who are taking advantage of so many in the world, who are struggling, should be stopped by Paypal. But instead it looks like Paypal are helping these low-lives to get away with what they are taking from so many people. I have lost all faith in Paypal, as I am sure many other buyers will be, as we really don't get any buyer protection from fraudulent Chinese sellers.
I also just had a bad experience with PayPal after nearly 26 years With them, I am disgusted at the way they resolve issues. I got a notification that over 120 euro was deducted on my account, shocked I opened an unauthorized issue. I was told that it was not unauthorized because I payed last year for the antivirus software which I admit I did but last year is was 23 euro not over 120euro. For me this is unauthorized as I did not agree to this amount. This is 5 times more, does that mean next year I will pay 10 times more. Were is the protection for the client? This means that we will not be able to trust PayPal to look out for their clients as companies can deduct what they feel like from our account.