Ebay problem

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Not sure if this is the right sub forum. Mods if its incorrect please move it.

Recently I sold two items for a friend on ebay. One item unfortunately was broken by my friend's dog so we refunded the money.
Second item, was sold as-is (even mentioned in the heading) with no returns policy (made me wonder if people read lisitngs carefully). Buyer complained and even with all the efforts to appease the buyer. I lost the appeal in resolution center. To top it off, I got a negative in feedback.

Ebay claims I owe them the listing fees + final value fee. I was ok to fork out the listing fee on both cause I did use their service to display the items. I dint agree to pay the final value fees (at least on the refunded item). I tried explaining them over the phone/email. Every promise of 24-48 hr resolution came to naught.
Now they have sent me a mail saying my account has been put on hold. I might be charged 1.5% late fees and collection efforts will continue.

I want to settle this but they are not giving the resolution. What happens if I keep ignoring them.
 
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