Complaint Review: NCO And Paypal

OK This one is sure to have some legal loopholes that I am struggling to find. Let me start from the beginning.

I sold my Playstation 2 with a whole bunch of games to a woman over EBAY, but it was outside of EBAY because she offered me a lower bid after the auction ended since I did not get my reserve. I agreed and she paid me 310.00 over paypal using her credit card.

I went to Mailboxes, ETC. and had the whole thing packaged up and send out. When she got it she said the unit didn't work and she wanted her money back. I knew it was a good unit so I went along with her wishes and filed a claim with UPS. UPS picked up the package and brought it back to me; when I recieved it I noticed the serial numbers were different and my unit was switched out for a broken one!! Whether it was Mailboxes etc who didn't pack it at that time or the woman in Tenn. who bought it, there was no way to prove anything.

I filed a police report and then waited to hear from UPS. UPS denied my claim saying that since it was switched before or after transport they could not help. I gave up pursuing UPS and this woman and went to send everything back to her, considering I got her money and was all set. She said she wanted her money back and used a reversal or chargeback on her card to take the $310 back from me.

I had already pulled the money from Paypal and they now said I had a negative balance of $310. They would not listen to the fact that I now have a broken unit and it was not my fault. They have absolutely no protection from chargebacks and said I needed to pay them.

I did not and ignored their emails for a few months until I got a collection letter from NCO financial systems. I called them and spoke with this woman - I think her name was Mrs. Law. She was so so rude to me and nasty when I told her I filed a police report and I was the victim of fraud, she hung up on me.

When I called back I think I got this Mr. Vargus who I again explained my situation to and he transferred me back to the woman, who again said I was wasting her time and she hung up once more. I was so polite and these people basically spit in my face. I don't know what to do. It's been almost 10 months since I was defrauded and I want to settle this. Sould I just pay them or what?

Thanks for anyone who reads this and can give me some advice.

Brian
Morrisville, Vermont
U.S.A.