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Don't send the book back unless you get your credit back first, PLUS another credit to cover the cost of postage. PBS rules state that you are not obligated to send back a book unless you wish to. I would go to the Help Center and copy the passage about this and paste it into your PM to this person. Offer to send pictures of the damage, but politely tell her that you will be happy to send the book back and mark the problem transaction as resolved upon return of your credit and an additional credit for postage, per PBS rules. If she still refuses, then I would tell her that you have no chocie but to mark the problem transaction as unresolved.
I'm happy to send her pictures of the damage, but if she wants the book back, shouldn't she send postage BEFORE I send the book back?
Yes, she should send the postage before you send the book back. You are under no obligation to send a damaged book back.
I won't send a damaged book back. It is unpostable. I do not want to go through the trouble. What is the point since it can't be reposted and the sender didn't want it in the first place because they posted it to their bookself?
From the Help Center: http://www.paperbackswap.com/help/help_item.php?id=344
If you are contacted by a requestor about a problem transaction: