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Non Pony: Paypal Friends and Family and got scammed. Advice please?

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Thunderwing:
So this is a post I am making for a friend, not for me, but I know everyone here has tonnes of advice and years of experience. She is a novice buyer.

The transaction happened on Facebook. Buyer purchased a rare toy. Seller requested FnF payment via paypal. Buyer sent payment via Friends and Family via paypal.  Seller provided a fake tracking number, toy never arrived. Seller blocked buyer, which basically says to me it was a deliberate scam.

Buyer has called paypal and was told 'nothing we can do'. 

I am pretty sure that isn't true. That paypal can choose to help, and in this case is not.

What should our next step be?

banditpony:
Pretty sure it is true, as far as paypal is concerned.

That's why the options are "send to a friend" or "pay for an item/service". Only using the pay for an item option gives buyer/purchase protection.
https://www.paypal.com/webapps/mpp/paypal-safety-and-security

At best if she used a bank card, or a credit card, she can try to see can do the charge back through them.

Oneleo1:
She needs to file a report with the sellers local police as well. I dont think it will help get her money back, but it will at least flag the seller.

LadyMoondancer:
Yikes, I would never buy something via Friends & Family, but I would ESPECIALLY not do it if the seller specifically asked me to.

I don't think there's anything Paypal can do, or at least will do.  In cases where things are legitimately between friends / family, they don't want to get embroiled in a dispute.  As far as legality, you can check into it but I'm sure Paypal put "we don't have to do anything" in their fine print.

I agree with trying credit card chargeback and/or police report.  A police report might scare the seller into complying.

Tulips:
Be cautious doing a credit card chargeback, in my experience that will only put the PayPal account into negative and they will freeze it until the balance is fixed by the account holder. A police report might help your case, but I don't know your laws regarding PayPal's practice in this situation.

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