I'm about to receive a refund from a faulty item i purchased 9 month ago (i'm in germany). The seller (UK) said that because of an "open case on the transaction" the refund can not be made. I contacted paypal, they said there is no open case and there was no refund made.
The UK seller insists the problem is on paypals side.
A dispute has to be filed within 180 days from date of payment. For the seller to issue a refund to you, they would have to send you a PayPal payment for the amount you paid at this point and can no longer refund within the original transaction.