PayPal Is Sending Me To Collections


We sold a $4000 projector on Ebay and received payment via Paypal.  The projector was brand new, sealed in box.  Three days after the person received it they emailed us saying it didn't work and they wanted their money back.  I immediately replied and said that the unit was brand new, so it was most likely a setting issue rather than a DOA product and provided him the mfr support phone number.  After two days I didn't here back so contacted the buyer again.  Still no response so I assumed he go the issue resolved.  Then the buyer put the credit card charge in dispute so Paypal pulled the $4000 out of my account!
So now Paypal has froze my Paypal account and sends me threatening emails every week or two about sending me to collections and that I need to make a deposit immediately to avoid this.  The buyer never sent the projector back so I don't have the projector and Paypal wants me to pay them now or they are going to send me to collections!


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