GOOD NEWS GUYS. Paypal have credited my account. I am not sure if they're now taking the claim up with the buyer or have taken the hit themselves but who cares??... Basically my last phone call with Paypal was along the lines of: 'I sent the item via Royal Mail, a courier you approve of. Using their International Signed For delivery - the only one you can use when sending to Australia. You asked me for online tracking information, which I gave to you, unfortionatley its not tracked as soon as it leaves the shores, something which Paypal MUST know. You then asked for proof of delivery from Royal Mail- which I provided you with, you then said it wasnt good enough and asked for a signature - again something Paypal must know Royal Mail cannot give to me because of data protection laws. Sooo I believe there is nothing more I could possibly do and so I will require a final decision letter so I can escalate a case with the financial ombudsman.' 3 Days later my account was credited and the whole matter is done. There is basically no protection if you sell an item to Australia. As soon as the buyer makes a claim they will get their money back because there is nothing you can do to prove to Paypal it has been received. I think they only took pity on me because I was ringing them every other day and didnt want an Ombudsman case.

I have now recieved a letter from Royal Mail stating item WAS delivered. So I not only have proof item was sent, but proof item was RECEIVED. I have used Ebay and Paypal for years and have good ratings but at the end of the day I fear Paypal are going to side with a guy who is an obvious [EDIT] who has since been kicked off Ebay. How can there be such a big loophole that practically encourages fraud because its so easy to do and get away with it. There is nothing more that I could have done but really think Im going to have to bite the bullet and cough up. Any thoughts??!!

Paypal contacted me today stating they are sending my debt to a debt collection agency. I dont want to pay it whilst I am still in dispute but I dont want to have a bad credit rating over all this!?

Many Thanks for your reply Yes the tracking number just says 'delivered to Australia' but doesnt state it has actually been delivered to the guys house. It does also have to be signed for so Im hoping that there should be a bit of a paper trail that will back me up. Also, the guy has been kicked off Ebay for 'incorrect buyer practises' so I guess he's been doing this for a while. I am still awaiting Royal mails decision on the case (2 months on). My worry is Royal Mail having proof it was delivered, because I still don't think Paypal will play ball and return my account balance to zero, one guy at Paypal told me it will be up to me to take legal action if this happens? Surely not right?!? Any Thoughts?

Hi All I am having a few problems with Paypal after selling an item on Ebay. I am based in the UK and I sold a mobile phone for £321 to a guy in Australia. The buyer sent me payment through Paypal which I then withdrew to my bank account and sent the phone via Royal Mail International Signed for delivery. After a couple of weeks the guy made a claim he had not received the item. Paypal asked for a tracking number(on my receipt from royal mail) to prove I had sent item. I provided this but after a further 2 weeks they found in favour of the buyer and debited my account £321. Paypal advised me to make a claim through to Royal Mail which I am now doing but they have admitted even if Royal Mail provide proof the item was delivered it would be up to ME to take legal action against the buyer who lives on the other side of the world! As it stands I am a phone down and also £321 in debt to Paypal which they are threatening to pass to a debt collection agency. Surely this is not fair!? Many Thanks