Returned the item but still paying? Your BNPL refund rights explained

You sent the item back. The retailer confirmed they received it. The parcel tracking shows it was delivered weeks ago.

So why are you still making payments?

It is one of the most frustrating problems you can face when using Buy Now, Pay Later, often shortened to BNPL. You do everything you are supposed to do. You return the goods. You keep the proof. You wait for the refund to show up. But the payment reminders keep coming, the instalments keep being taken, and you are left wondering whether you are expected to keep paying for something you no longer have.

Resolver complaint data shows that refund related issues are the single biggest source of complaints about major BNPL providers. Complaints about refunds not being processed or refunds being refused account for almost a quarter of all BNPL cases, making refunds by far the most common issue consumers report.

This is not a niche problem, it’s not just one retailer making a mistake or one provider being slow to update an account. Refund disputes are one of the most common ways BNPL can go wrong.

The good news is that you do have options. If you understand who is responsible, what evidence you need and how to escalate your complaint, you stand a much better chance of getting the problem resolved.

Why BNPL refunds can get complicated

When you buy something with a debit card, a refund is usually between you and the retailer. You return the item, the retailer processes the refund, and the money goes back to your card.

BNPL adds another party into the process, instead of paying the retailer directly in full, you use a provider such as Klarna, Clearpay or Zilch. The BNPL provider pays the retailer, then you repay the provider in instalments.

That means there are usually two relationships involved:

Your purchase agreement with the retailer.
Your payment or credit agreement with the BNPL provider.

This is where things can become messy.

The retailer may say it has processed the refund. The BNPL provider may say it has not received confirmation. The provider may continue collecting instalments while the retailer investigates the return. Meanwhile, you are stuck in the middle, trying to work out who has your money and who can actually fix the problem.

Who is responsible for your refund?

In most cases, the retailer is responsible for approving and processing the return. If you returned the item in line with the retailer’s returns policy, the retailer should process the refund and pass the relevant information to the BNPL provider. The BNPL provider should then update your account, reduce your balance, cancel future payments or refund any instalments you have already paid.

But the process does not always happen smoothly. Delays can happen when the retailer has not logged the return, the warehouse has not inspected the item, the refund has not been passed to the BNPL provider, or the BNPL provider has not updated your payment schedule.

You may also run into problems if the retailer disputes the return. For example, it may say the item was damaged, returned late or not received at all. That is why it is important to keep evidence from the start. If you can show what you bought, when you returned it and when the retailer received it, you are in a much stronger position.

Should you keep paying while the refund is being sorted?

You may feel that once you have returned the item, you should not have to keep paying for it. That is understandable. But stopping payments without agreement from the BNPL provider can create new problems.

If you miss instalments, you may receive payment reminders, late fees or collections messages. In some cases, missed payments may also affect your credit file.

So before you cancel a payment or ignore a reminder, contact the BNPL provider and explain what has happened. Tell them the item has been returned and ask whether they can pause the payment schedule while the refund is being investigated.

Do not rely on a phone call alone. Ask for confirmation in writing. If making the payments would cause financial difficulty, say so clearly. The provider should consider your circumstances and explain what support is available.

What to do if the retailer says the refund has been processed

This is one of the most common BNPL refund problems. The retailer tells you the refund has gone through, but your BNPL account still shows money outstanding. You may still be asked to pay the next instalment even though the goods have been returned.

If this happens, ask the retailer for written confirmation of:

The refund amount.
The date the refund was processed.
Any refund reference number.
Confirmation that the refund was sent to the BNPL provider.
The order number and returned item details.

Then send this information to the BNPL provider and ask them to investigate why your account has not been updated.

Keep the message simple, explain that the retailer has confirmed the refund, attach the evidence and ask the provider to pause payments or correct the balance while it investigates.

What to do if the BNPL provider says it has not received the refund

Sometimes the BNPL provider will say it cannot update your account because the retailer has not sent the refund confirmation.

If that happens, go back to the retailer and ask them to confirm exactly what has been sent to the provider and when. You can also ask the retailer to contact the provider directly.

This can feel frustrating, especially when each company tells you to speak to the other one. But you should not be left to solve a communication problem between the retailer and the BNPL provider.

If both sides keep passing you back and forth, raise a formal complaint with both. Make it clear that you have returned the goods, provided evidence and are still being asked to pay.

What to do if your refund is refused

A delayed refund is different to a refused refund. The retailer may say you are not entitled to your money back because the item was returned late, damaged, used or excluded from the returns policy.

If you disagree, ask the retailer to explain its decision in writing. Ask for evidence, not just a general statement. You should also check whether the issue is about a “change of mind” return or a problem with the goods. If you simply changed your mind, the retailer’s returns policy may matter. But if the item was faulty, damaged, not as described or not delivered, you may have stronger legal rights.

Do not assume the retailer is right just because it refuses the refund. Ask questions, keep records and challenge the decision if you believe it is unfair.

The evidence you should keep

Evidence is crucial in BNPL refund complaints.

You should keep:

Your order confirmation.
Your BNPL payment schedule.
Your return confirmation.
Proof of postage.
Tracking details.
Delivery confirmation.
Emails from the retailer.
Emails or messages from the BNPL provider.
Screenshots from your BNPL account.
Any refund confirmation or reference number.

If you speak to someone by phone, make a note of the date, time, who you spoke to and what they said.

The clearer your paper trail, the harder it is for either company to ignore the issue.

When should you make a formal complaint?

You should consider making a formal complaint if you have returned the item, provided evidence and still cannot get a clear answer.

You should also complain if:

Your payments continue after the refund should have been processed.
You are being charged for goods you returned.
You are receiving debt collection messages.
The retailer and BNPL provider keep blaming each other.
Your refund has been refused and you believe the decision is unfair.
Your account balance is wrong.
Your credit file has been affected.

A complaint does not need to be long or complicated. It just needs to be clear.

Explain what happened, when it happened, what evidence you have and what you want the company to do.

For example, you might ask the company to cancel the remaining balance, refund payments already taken, remove any late fees, correct your account and confirm that your credit file has not been affected.

Who should you complain to: the retailer or the BNPL provider?

In many cases, you should complain to both. Complain to the retailer if the problem is about the return itself. That includes delays processing the return, refusal to refund, missing parcels, faulty goods or disputes about whether the item was returned. Complain to the BNPL provider if the problem is about your payment schedule, your account balance, continued collections, late fees, credit reporting or poor handling of your dispute.

If you are not sure who is responsible, do not let that stop you. Send the complaint to both and ask each company to explain what it has done to resolve the issue.

Resolver can help you raise and manage complaints about BNPL refund problems. You can use Resolver to set out what happened, send your complaint, keep track of responses and store your evidence in one place. This can be especially helpful when you are dealing with both a retailer and a BNPL provider at the same time.

Refund problems can quickly become confusing because there may be several different conversations happening at once. Keeping everything organised makes it easier to prove what you have said, what evidence you supplied and how each company responded.

If you returned an item but are still paying through BNPL, do not ignore it. Refund disputes are the most common BNPL complaint issue seen by Resolver, with refund related cases making up almost a quarter of complaints about major BNPL providers. That means you are not alone, and you are not being unreasonable by challenging the problem.

Start by gathering your evidence. Contact the retailer and the BNPL provider. Ask for payments to be paused if the refund is still being investigated. Keep everything in writing. If the issue is not resolved, raise a formal complaint.

Returning an item should not leave you out of pocket, stuck in a payment plan or caught between two companies. The sooner you act, the better your chances of getting the refund sorted and bringing the complaint to a close.

This content is provided for general information purposes only and does not constitute financial, legal, or professional advice. Resolver does not provide financial advice and does not recommend any particular course of action. You should consider seeking independent professional advice if you require guidance specific to your circumstances.

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