Update: I contacted the FSA and they wrote a letter to Paypal and Paypal have just Refunded the Total amount they took from my Account after about 4 Months.. Thanks for all the Advice, just wanted to let anyone in a similar situation know...
Hi All, I sold an Item on Ebay over a month ago, the Buyer was from Netherlands and It was a Original Dreambox HD. Buyer paid and Item was despatched, Unfortunatelu I forgot to Include the Power Adapter and buyer said I can Either give him a partial refund or send it out to which I agreed, In the meantime, He tested it and confirms its working fine, However he wants 50 Pounds for a partial refund, which is just too high, He also meantioned Opening up the Box to Fix an Harddrive. All of a sudden He no longer wants the refund but want his whole money back as the Box is now fake and its hot etc. So He reaised a dispute with paypal.
I responded to the request for Information informating paypal that Buyer was happy with the item originally but later uturned as the box is now faulty, Even if he was returning the Item, I do not believe it has not been tampered With, Now Paypal has decided in His favour and have refunded Him and want me to bring my balance up to normal as it currently in negative ballance, Plus they never said anything about the item , either for the buyer to return or otherwise.
Any advice will be appreciated.