I recently had 2 cases that I had filed with PayPal, under the 'Buyers Protection Program'. In both cases I was the buyer and the seller was found at fault. Also, in both cases I was notified by PayPal that they were unable to recover any of my losses from the sellers. I am a moderate seller on ebay. I have had claims filed against me on several ocasions. Each and everytime that a claim is filed against me. PayPal has always instantly frozen the funds related to that particular transaction from my PayPal account. This appears to be the company policy from all of my experiences. I have also noted that whenever PayPal does freeze the funds for any ebay auction. If you check the payment status of that particular auction. The auction will show as being paid, and the moment that PayPal freezes those funds. The auction will then show as being unpaid. Which to me would indicate that the funds are in limbo until fault is found. This happened to the two auctions that I am referring to. They went from showing 'Paid' to 'Send Invoice' which leads me to believe that PayPal now has control of those monies. Fine, no problem! But when someone is found to be at fault, PayPal seems to keep this money for themselves and send a convenient notice to the plaintiff that no funds were recovered. I sent an email to them yesterday, indicating that if my $206 USD was not returned to me. That I am going to close my PayPal account in protest to their misleading 'Buyer Protection Policy' which is found in most auctions. Not to mention that they charge a fortune for very modest services rendered without any compensation in a dispute. If anything similar has happened to you, I would love to here about it. And, I would also advise to write a letter of complaint to PayPal online payments services regarding such. You can email me direct if you wish at gramma_dynamite_2004@hotmail.com