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Sold item as collection only, buyer arranged a courier as not local, i found item faulty so refunded
in Ebay, auctions, car boot sales, post & parcels
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The OP advising their buyer that item was faulty wasn't them being "nice" as you put it. It was them doing what was legally required as the goods no longer matched their description..
With an attitude like yours, you are the type of person that I sincerely hope that I never have to deal with on eBay or in any other financial transaction.