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Cancel the DD with your bank at once to prevent them taking the money, and use your PayPal account to remove any credit/debit cards. This means you owe PayPal, but you still have the funds in your bank account - it's a few months before they take action when you owe them.

Then go through the resolution process - everyone always assumes that PayPal only protect the buyers, but thats not the case - the fact he has give you good feedback when he recieved the item, means his claim is almost a non-starter. Gather all your evidence together, postal tracking code etc, and comply with all requests for information that PayPal send you.

If the outcome does happen to be that you must refund him, and he must return the item... if you play it correctly, there is a way to fool PayPal's system, but I won't post on here (I did it to some muppet who tried to have me off and was then being a tit about it, making allsorts of false claims, anyway he could do nothing about it, PayPal in the end turned round and told us to resolve between ourselves as it was out of their hands haha).

Good luck!!

Not being funny but if the item is'nt as described then the buyer has a case, I have sold a few things on there and am always as honest about description for mine and the bidders benefit.

Tell your bank you've lost the card and they'll cancel it

Isn't paypal 'connected' to your bank account?

As someone who takes in the region of 1000 payments by PayPal each year (used to be quote a lot more), and having used the service since it was called Billpoint, I can honestly say that I have a lot of faith in their service and procedures; sure it does not always work out well, and they have had their bad press over the years, but generally, they have always been very good with me.

As I said earlier Willo, fight the case, you are almost certainly onto a winner anyway given the claimant has left positive feedback, and the legnth of time that has elapsed; I won a case a few years back, whereby I sold a K800i Silver when they first came out, a week prior to Christmas (2004 iirc?). Anyway, the phone sold for circa £300, and though the item sold two days before the final working day/Royal Mail delivery day before Christmas, I recieved an email requesting it to be delivered before Xmas day. So I sent, as I was going to anyway given the value, via Special Delivery.

On January 5th, I recieved a message from PayPal informing me that the buyer had filed a claim stating they hadnt recieved the item. They hadnt left feedback, and I was worried I was going to lose the money; but I stayed calm, cancelled my DD with the bank and removed my cards from PayPal, complied with all PayPals requests for information, provided the tracking number etc... and 10 days later, they found in my favour, and removed the hold on my account/minus balance.

Never heard anything again!! Lol!

Everytime they called me, I told them they had acted illegally as they are operating under U.S. laws but here in the U.K.
I pretty much begged them to take me to court as I knew I'd win but they wouldn't because they knew it aswell.

If you have proof of postage and a tracking number that proves delivery then that's all good and well.

My case was different and oh so easy to do - I won't go into full details on an open forum ( not that I don't trust anyone but just think it's a bad idea, lol ) but basically, it was HIS proof of delivery when returning the item that screwed me.

Also, when selling large items like cars e.t.c. NEVER use paypal because if the buyer claims non-receipt after they have collected the car, you don't have proof of postage to show paypal ( this happened to my next door neighbour and he lost a £3500 celica ) - the buyer gave false name and address details and it's probably somewhere in Eastern Europe now.