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Answer this question for me: IF you resolve the problem with the ass hole buyer, will that resolve your paypal limitation and ebay suspension.
Should the answer be in the affirmative, then who is the ass hole?
Try to solve the problem and have the accounts restored. Good win for you then;)

Much as I hate hate hate buyers like this, I do refund. Yes, they have ignored
my policy on the listing but I refund them as a bribe more than anything. Give
the refund they seldom come back with threats. I send a letter of humble pie
with the refund.

As for the comforter, seriously, make sure it is clean and give it to a homeless
shelter. Karma, my friend.

They actualy can get a refund because i have money in the accounts locked up i cant access because my account is limited.

From what i read so far it is very hard to get an account restored.

They are requesting all these crazy documents etc..

I mean who wants to deal with CRAZY buyers who cant read your ad??? A person who still bids on your auction and knows they cant get a refund is TROUBLE in my opinion. They willl just try to threaten you with negative feedback etc. And who knows what they will send back in the package. They could send you back an empty package with a tracking number.

NO REFUNDS lol. Its very simple.

But i would rather give an idiot back a refund with the locked up money than have it sit there.

Not true, I have had 3 limited or "no longer wish to do business" paypal accounts and I could only refund on 2 of them. The other one simply did not have the refund button option there, even though the transactions were less the 30 days. Maybe because I sent "insurance payments" to other good paypal accounts. When i have to much balance in one account I transfer over to another account to withdraw, if they ever limit you and you still have a positive balance, just refund one of those payments back to yourself.

Re: Refunds?
 

You just need trustworthy payment provider that will check all your clients to prevent such undesirable things