Customer tricked PayPal into forcing refund and will not return goods.

[N1DCentral]

I run an an online business as a sole proprietor and web merchant. A few
months ago I sold a large order of 300 game controllers (and some extras a
threw in for such a large order) to a customer in redwood city California
via my eBay account worth about 2 grand. They wanted to return them despite
the terms of the eBay auction being clear regarding returns and the time
period allowed for it. They had paid using PayPal so they filed a complaint
before the 45 days to do so was up. PayPal decided that I should allow them
to return it. They ruled in their mediation that return shipping would be at
the buyer's expense and eBay and PayPal policies, as well as my auction
listing, (and i believe law most likely) states that refunds are not given
until the items are returned. The buyer then proceeded to return a mere 60
of the items and used the USPS tracking number to falsely claim the PayPal
Buyer protection (sort of like insurance) money (which I was liable for) and
PayPal proceeded to ignore that the items couldn't possibly had fit in the
small package he sent, despite clear records of multiple large boxes I had
shipped the items to him with, and the ones my supplier used to ship to
me... as a result they forced me to refund him but then advised I should
file a Police report. Which I did. I tried to resolve the issue with the
buyer and he refused to send the items unless I sent him money to ship it
back. Eventually I simply told him, after he kept threatening to drop it off
at the salvation army or good will, to bill a UPS Shipment to my account or
use the bill recipient option. After I told him that he simply never replied
and ignored my e-mails and other attempts at contact.

The entire ordeal has cost me a few grand let alone caused problems for
other customers and has contributed to me not being able to use my account
for selling over the past few months.

In short the buyer has a few grand of merchandise that they were able to
force a refund for, and receieved a refund .. And still refuses to send it.
As far as I am concerned he has stolen my items.

They also (as it turns out) run a business they sells similar products to
mine. I find this very suspicious.

What course of action would be wise to take ? Should I hire a lawyer assist with
filing charges or a civil suit.. What would be necessary to at least
receive my money or the goods back (provided they are still in his possession)

[msg]

Based on what you say here, you could file suit against them (or at least threaten to do so) in small claims court or in regular court; filing in small claims court is easier and requires no attorney...you could try to collect all of the costs and damages that you suffered due to their behavior... You may also report them to your state attorney general's office.

I am sure the lawyers at World Law could also intervene for you if you email them on the home page.

too bad you cant sue paypal for making you do a refund when your terms clearly stated what your policy is.
paypal ripped me off in a similar deal just week, but it only costs me $86.
Im not going to use paypal anymore.

I'm in the UK and have been ripped off by paypal. I sold a PS3 for

Me too.
Pay Pal awarded a Refund to a buyer that clearly was telling lies about " Item not as described" the ebay auction stated NO refunds and sold as seen.
I am sure I am correct saying this.
They have NO LEGAL right to move funds or give refunds on your behalf.
I requested all the case history was revised and wanted to know how they decided in the buyers favor ? As I have a witness that will stand in court and give eveidence saying it was working and as described.

OK HERE IS A THOUGHT FOR YOU LOT.

In the UK we can claim bank charges back for the period you have held the account.
So Pay Pal says to me they are the same as a bank ( well under the same guidelines ) so why dont us UK lot claim our charges back that we have been stiffed out of ?

And by the way I couldnt care if the seller returns the goods.
I will accept them as a gift and I will not refund.
I have instructed Pay PAl to close my account and said I do not authorise and payments to leave my account.

I WILL NEVER USE PAY PAL AGAIN.

Steve