This recently happened to me. I changed my address and verified it on both my ebay and Paypal accounts and yet somehow Paypal sent a very old address to the seller. I noticed, immediately notified the seller of the error and the correct address, and canceled and reinitiated the transaction to make sure the correct address would come up. Regardless, the seller was an idiot and instead of doublechecking, sent the package to the wrong address anyway, states away, admitted her mistake several times, and then stonewalled when I wanted a refund.
I initiated a dispute with Paypal, but because the seller provided them with a tracking number (to the wrong state, mind you), she won. I have appealed at least 4 times. Each time I appeal on the phone, the Paypal CSA says, "this doesn't make any sense, you're sure to win this appeal, because the address on the transaction is correct." Yet, Paypal keeps denying me for the same exact reason each time. It is INFURIATING.
On the latest appeal (twice in the same day), the Paypal CSA told me that because I had "several active addresses in ebay" that Paypal couldn't give me a chargeback. I told her that she was mistaken, and we literally had a 3-way call with ebay where it was confirmed that the ONLY address on both my ebay and Paypal accounts is the current, correct one--not the 5-yr-old incorrect one given by Paypal in the first place. The Paypal CSA was stunned and said that with THIS information in the appeal, they are "sure to get this settled in your favor." She also said that "this has never happened before." Well, a quick Google search shows that this sort of Paypal error has been a frequent occurrance since at least 2007.
I am an attorney, and it seems to me that the amount of money lost to people over this glitch and the frequency with which it occurs is an issue ripe for a class-action suit. I will promise you that if this issue is not rectified in my favor, that, at a minimum, I will make this a PR problem for Paypal. This should be a very simple issue to rectify, and yet Paypal does not seem to do a minimum amount of due diligence in these instances to correctly resolve the claim.
My advice to you is to keep appealing with them until you win. Even if it takes months. Never ever give up if you know you're in the right. If you give up, then you cannot possibly win.
I'll let you know the final outcome of my issue.
