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Strange why they didn't do it when I was in dispute with the person I sold an item to. Paypal kept emailing me & asking me to pay them the money they had given back to the buyer. I argued with them, spoke to them on the phone & was able to prove that what I was saying was correct. I had all the communication in email & eventually they agreed I owed them nothing. I'm sorry qtrain but what you say isn't quite true. They cannot take money from your bank account without your permission.
I think they can. I have a buyer now who is sending an item back to me and PayPal have taken the money from me already even though the item hasn't been returned yet. According to PayPal the amount is 'On Hold' from my account.