Client requested refund but job is done

[alizadalala]

Hello everyone,

So I have a situation like this:

We had 3 milestones with a client, he put money in escrow and I started doing the job. We were constantly communicating, several times he said that he liked it, we did do several revisions.

Overall, we worked for 2 days, and the last time I sent him the work for a feedback/review he tells that he doesn't like it, that the quality of my work is very low, and basically, he tells things that are obviously not true. 

He then proceeds to cancel the contract and asked for a refund. 

I communicated to him that the job is done on my part with multiple revisions. He still refuses to pay.

So I have 2 questions:

1) Should I refund him the money? If yes, would it affect my JSS? (This was the first milestone, so nothing has been paid)

2) In case if I don't refund him the money, what happens then?

Thank you.

[petra_r]

---

Lala A wrote:

So I have 2 questions:

1) Should I refund him the money? If yes, would it affect my JSS? (This was the first milestone, so nothing has been paid)

2) In case if I don't refund him the money, what happens then?

---

1) If the work was done correctly, I would not refund. Yes, Refunding would have a negative effect on your JSS, but so would poor private feedback which would already have been left if the client ended the contract by asking for a refund.

2) A dispute is initiated.

How much money are we talking about?

[alizadalala]

I ended up refunding him money, because it was only $50, and that money wouldn't have made me richer. Also, it is not worth thinking and fighting for it... At least for me, right now. 

Just was interested if he had "legal" rights or whatever if I refused to refund. Thank you anyways!

[prestonhunter · Accepted solution]

Lala:
This client's behavior was unprofessional, unethical, and immoral.

I am sorry that you are facing this situation.

You asked if you should refund the money?
If you did the work, then you should not refund the money.

The purpose of a refund is this: If a freelancer does NOT do the agreed-upon work, then the freelancer should refund the money. That does NOT describe this situation.

re: "If yes, would it affect my JSS? (This was the first milestone, so nothing has been paid)"

If NOTHING was paid on a contract, then you will end up with a zero-pay contract. That DOES have a negative impact on JSS.

re: "In case if I don't refund him the money, what happens then?"

Then a dispute will be created. A dispute means that a "mediation" process begins in which an Upwork mediator encourages the freelancer and client to resolve their differences and compromise. During a dispute/mediation process, Upwork does not make a decision about who gets the money. Upwork wants the client and freelancer to agree to something.

During this period you could (for example) state: "I understand that my client wants a refund, but I did all the work and there is no basis for the refund request. However, in an effort to help resolve things while also bringing a resolution to this matter, I am willing to give the client a 50% refund."

You could also state that you will not refund any money, and that you require full payment to be made.

If the client and freelancer can not come to an agreement, then the next step is arbitration, if both freelancer and client agree to pay $291 (non-refundable) to go forward to that step.

If things go to arbitration, it is very rare for the client to win and be awarded the escrow money. Unfortunately, even if the freelancer completely wins... the freelancer has paid $291 for the opportunity to go to arbitration.

What sometimes happens is that the freelancer refuses to give up any of the escrow money, and insists that the matter go to arbitration... but if the client DECLINES to go to arbitration, then NOBODY pays the $291 fee, and the freelancer gets all of the money in escrow.

[prestonhunter]

re: "Overall, we worked for 2 days, and the last time I sent him the work for a feedback/review he tells that he doesn't like it, that the quality of my work is very low, and basically, he tells things that are obviously not true."

It sounds to me like he has a "strategy" to hire a freelancer to do work for him, and then pretend that he doesn't like the work in order to get his money back. (While still using the work.)

This sort of thing is obviously unacceptable. I am sure that you would never even think about doing something like this to another human being.

[alizadalala]

That is why I let it go and trusted karma to do its thing.

I ended up refunding and messaging him about how unethically he acted and wished him good luck. 

Thank you for your empathy and advice! Appreciated. 

[allergywriter]

I don't know what kind of work you performed, but if he didn't pay you....you will own the rights to the work. If you find it anywhere, tell him he has to take it down or pay you.

[alizadalala]

I did a 3D illustration.

I am actually thinking about continuing and making a whole personal project out of it - building something good instead of regretting or feeling bad about it! 

[ranjit_singhania]

Hi Lala, I U did a mistake by refunding!

You should read or rewiew Upwork freelancer's guide and fixed/hourly contracts policies that how you get paid, how to can claim if not getting paid and mainly "Payment Protection Plan".

I am having  the same issue unsolved.

what I did is:

Explained why I should not refund at the same time mailed the matter to upwork support

and they replied with complete solution.

Then since I couldn't do the correct the video (but the the main one only corrections required ) the client wanted so I gave the project and media files to client so that he could hire someone else in order to complete it!

and I closed the contract .

Now, anythime he can file a dispute against me but I have proper proof to save myself.

Now what should you do?

You can also file a dispute in your case and get the funds back (if possible) but I don't think so it works becuase already you refunded as I  can see.

kindly visit this guide: https://community.upwork.com/t5/New-to-Upwork/Getting-Started-on-Upwork/td-p/264214

Next time, Don't refunt until it's necessary and don't fear at all! We are here to help you!

[darren_hourigan]

Did this affect your JSS? 

[wlyonsatl]

Preston,

How do you know, "If things go to arbitration, it is very rare for the client to win and be awarded the escrow money."?

And how rare is "very rare" - 80% of the time? 90% of the time?

[petra_r]

---

Preston H wrote:

If the client and freelancer can not come to an agreement, then the next step is arbitration, if both freelancer and client agree to pay $291 (non-refundable) to go forward to that step.

If things go to arbitration, it is very rare for the client to win and be awarded the escrow money. Unfortunately, even if the freelancer completely wins... the freelancer has paid $291 for the opportunity to go to arbitration..

---

It almost certainly wouldn't have gone to arbitration over $ 50

Either the client would have declined to go to arbitration, because they'd be throwing a lot of good money after bad, even if they won, which is, as you say, not the norm, or Upwork would have resolved it by giving the client their escrow funds back and paying the freelancer a courtesy credit, as that is considerably cheaper for Upwork than paying their $ 291 share of the arbitration fee.

What it boils down to is the freelancer's ability to call the client's bluff and pay $ 291 with a very high probability of getting it back as well as getting the $ 50, but a small chance of losing at least the arbitration fee.

[rabiulsikder79]

Please give me a advice. I got a same problem with the client, she ended the contract and give me 5 star rating. But now she requested to refund about 84$ and she threats me that she will withdraw her rating and opening a case with Upwork. What should I do. I have done my job sincerly and with honesty. My job was hourly basis. 

[513e84ec]

I got the same problem the client started the contract yesterday: for Ingenico integration with terminal but today he decided to end the contract because: " It will no more work with him: He needs me to make to make complete flutter app for 300".

and the fact is that he created the first milestone for $100 and pretended to have an issue with the funding milestone.

[513e84ec]

When I have notice that he is about to end the contract , i have submited for payement request . What will i do to have my payment because I don't want to refund him .

[LuiggiR]

Hi St P,

I can see that you've recently opened a dispute regarding the contract in question. Kindly allow more time for a Mediation specialist to review your case and get in contact with you, they will assist you further.

[rabiulsikder79]

I got a same problem with the client, she ended the contract and give me 5 star rating. But now she requested to refund about 84$ and she threats me that she will withdraw her rating and opening a case with Upwork. What should I do. I have done my job sincerly and with honesty. My job was hourly basis. 

[allergywriter]

Did she tell you why she wants a refund of a portion of the job? Was some task left undone? If so, you can always offer to finish up something you missed.

However, if you did all the client offered and the client gave you a 5-star rating, don't give a refund.

You can contact Upwork and let them know the client issued a threat about changing their rating unless you pay them. That's against TOS

Good Luck!