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Problem with buyer

Hi, I sold a item. The buyer has asked for a partial refund saying part of it is not as described and it needs repairing. I've offered a full refund and to organise a courier collection at my own expense as I had lots of interest and I am not an expert so am not sure how accurate this figure is that he is asking for. However he only recevied it 5 hours ago and has taken it apart and told me he sent the piece off for repair so I can't organise the return. He just wants me to send him some money. Am I protected? I'm offereing to do the right thing but he shouldn't have done anything with the item if he wasn't happy with it, as I'm now completely stuck. I know he's going to open a dispute and leave negative feedback and my worry is he will end up with the item and a full refund. It's all part of my Dad's retirement fund too. Any help much appreciated! 

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It would be good to know whether it was the bike or the sideboard as both were collection in person. 

If it was, how did they pay?

Paying cash on collection voids any guarantee the buyer may have, as the ebay money back guarantee does not cover items paid in cash. 

Can you come back and clarify how they paid?

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