Pay Pal

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I purchased a cq woth £4.99 through pay pal the item didn't turn up pay pal looked into it and said because seller has no money in ac and they couldn't contact him then I would not get refund even though covered up to £500!!Whats the point of SAFELY doing transactions through Pay pal if there is no insurance as they state there is??I know Im not the only one this has happened to many others!
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