They have to answer to somebody, they can not just decide who looses what, I would have thought that's against the law and theft?
You would think so... apparently they get away with it.
You probably sign all rights away in the terms and conditions... i guess as they offer no financial "services" as such like loans or such they dont have to follow the same financial rules that many other companies would.
They are effectively an escrow service.
I also looked once at using paypal for business and they took upto 9%. Google checkout was much better.
Question for the OP.
Have you 2 paypal accounts? and one was linked to the other, or had you a very old email address attached to your paypal account?
The £30 refund, was that justified? A dispute you simply never heard about?
Paypoo are regulated by FSA