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@Kernowdreamer
It seems the Post Office trust customers who use online payment to pay for the correct weight of parcel. It is almost inviting fraud in so much as you could pay a lot less for a delivery and/or claim something was removed en-route when in fact the parcel was empty when it left your hands. He handed it to a Post office employee. How difficult or time consuming is it to look at the price on the label and see if it roughly matches the weight as they are holding it? In the case of this package it would have been blindingly obvious if he was pulling a fast one.
As far as I am concerned, even without insurance, he has paid for a service which he hasn't recieved. That came about not because of an accidental loss or damage to the item but because an employee of the courier has stolen the contents of the parcel and resealed the package to hide the evidence. That's devious and criminal and Parcel Force should admit fault, compensate the customer first and investigate afterwards or accept that their system is flawed and payouts, legitimate or otherwise, are inevitable.