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In the meantime, try to work it out with him. First, ask what he did. Second, tell him you need a few days to figure it out (all the while, waiting for your payment to clear through PayPal, allowing you to deposit it to your bank account). Third, say you did what you could to figure it out and send it back to him. Then wait for PayPal hell to break loose.

At least this way, you'll have your money.

I have to warn you, though... your PayPal account may be closed if it goes to dispute, he wins, and you have no funds to pay him with. (This is why I advised you to take off any credit cards/bank accounts associated with PayPal). Just having to simply make a new PayPal account is much easier than being out hundreds of dollars and stuck with a crappy phone. He did what he did to that phone and you shouldn't have to pay for it.

This may not be the most ethical way... but it ensures that you will get your money.

Good luck!

If PayPal sides with the buyer, then paypal will refund his money and the seller will have a negative balance. They WILL send him to an outside collections agency if they can't recoup the funds.
 
Quick Update

Hi everyone,

Just a quick update. I've restored the phone and things seem to be okay for now. I've tested with my original O2 sim and a colleague's Vodafone sim and so far they both work. My only concern, is that this was the case before I dispatched the phone the first time, and that this problem may re-occur.

The question is, did the problem arise due to him being forceful with the sim tray, thus increasing (or guaranteeing) the likelihood of this happening again?

The situation as it now stands is that I have the iPhone (albeit in a worse state than originally), he has made a payment to PayPal, PayPal have my money held in limbo until either 21 days have passed (paid on 9th June) or I receive positive feedback from the buyer.

At the moment, I just need to hope that his sim card works when he receives it and that he gives me positive feedback soon after.

Can anyone see a reason why I should not send the phone back tomorrow?

I get the impression that this guy is just clueless and heavy-handed, as opposed to a scammer, but even so, there is a real chance I could get screwed...
 
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