Paypal took my money without true cause/evidence!

[Stabier]

So I sold my WoW account to this person, he/she paid via paypal, alls good $900.00, then I give the account via msn messenger, I have the logs showing this taking place, alls good.  a few days goes by, I get my check in the mail from  paypal, $500 (limit) for the month, alls good.  Then the buyer claims it was an UNAUTHORIZED transaction, (in the middle of the night) without ANY EVIDence supporting the claim, within a couple hours BEFORE EVEN I WOKE UP at about 7 am, paypal closes the claim and gives MY money back to the buyer, without letting me provide evidence AND then saying since I cashed the check for $500 that I owe them that money, even though it is now officially my money... Is this even legal?  They haven't taken legal procedures against me yet... But can they?  Because to me, all they are is the one shifting the money about, they take a fee, and move it along unless it has to do with ebay, but this isn't, outside of ebay, via craigslist, well is there any legal obligation that I have to give the money to paypal when they had no right to (try to)take it back in the first place?  What is your input? thx.

-Stabier

[BigKahuna97]

If you refuse to repay PP more than likely they will stick a few collection agencies on your account to collect the $500 back.  If you refuse the CA's they may then proceed to file a civil suit against you in claims court (once the interest and collection fees are added on top of the original amount).  While it is unfair in your situation I would think your best advice would be to repay the $500 and call it a loss.  Perhaps next transaction like this you may want to involve and escrow service or a money transfer service that better protects sellers who look to sell intangible goods.

[surplusdealdude]

Had you ever read the User Agreement, you would have discovered that you have no selling protection for a sale of a virtual item.  None.  Zip.  Nada.

Then you would have known not to use Paypal for this type of transaction.