I got tangled up with PayPal over an eBay Power Seller who was abusing the system. I bought some items which never arrived - long story short, I felt obliged to leave negative feedback for the seller, after which he refused to communicate. So I turned to PayPal and made a claim for items never sent. The seller then sent me what turned out to be an empty envelope via registered post. He then gave the tracking number to PayPal as evidence of delivery. PayPal closed the case in his favour. I appealed the case twice and got the same result. I then requested all the documentation from PayPal regarding the case so that I could pass it on to the UK Financial Ombudsman. PayPal refunded the money... That whole process took about 6 months to complete.

That experience taught me that PayPal's Buyer Protection seems useless in protecting the buyer against a seller who is willing to act fraudulently.

Mark