Hi, this is Jim, thank you for the question - I will resolve this for you.
Sorry to hear of the issue. You do have a case against PayPal. Their head office is based in Luxembourg, so you can use the European Small Claim procedure to pursue them. It is an easy to use paper-based claim, no hearing is required.
You should email PayPal customer services, tell them you want a refund within 14 days, failing which you will take them to court. The email address: *****@******.***
You can use the European Small Claims procedure in order to claim. This allows for cross border claims of up to 5,000 euro in value. This is available for you to use until the end of this year. And existing claims will be unaffected once EU rules no longer apply to the UK.
Assuming they do not respond or they do and refuse to pay, you need to fill in the attached Form A and attach any evidence you wish to rely upon to your local civil court office in Scotland. The address for PayPal (to use in the attached form) :
PayPal Europe S.a.r.l. & Cie, S.C.A.
5th Floor, 22 - 24
The form asks for your bank details and the court issue fee will be deducted but added to your claim sum.
You can also access that form here: https://e-justice.europa.eu/content_small_claims-42-en.do
The court will then serve the form on the company who then has 30 days to respond. The court will consider the response and give judgment on the claim (or if further details are required the court will write to either party). They may hold an oral hearing (by telephone if the court has the facilities - which most do have) but with the facts of this case it is unlikely as it should be capable of being dealt with on paper. If you win you get a certificate against the company which means they must pay your claim.
Here is a useful guide if you would like to read more about the above : https://www.europe-consommateurs.eu/fileadmin/user_upload/eu-consommateurs/PDFs/PDF_EN/small_claim.pdf
I hope this helps and answers the question - please feel free to ask me anything else.
Have a good day,