I sold an item to a buyer with no confirmed address. She sent it as friends and family instead. Once she received the item, she claimed the transaction was unauthorized and paypal refunded her money and pulled it from my account. There wasn't even a way for me to show delivery (which I can prove with tracking, receipt for mailing, and photo of the mailing label). I paid her for an item the week before which she did send. Paypal appears to have no interest in the fact that this account from "unauthorized" transaction was perfectly happy to accept my payment the week before for the same amount and that was just fine. There is clearly an existing relationship there since they can see the payment from her account to mine and from my account to hers. Apparently this is the way they are getting around the no protection rule. Do I have any recourse? She now has my money and my item. I was told by the local police to take it to small claims court, but filing fees will cost more than the money I am out.
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