Solved: Client wants refund after contract ended

24248695 · ‎03-25-2021

Hi all,

I recently had a fixed rate client for $300. I submitted the first milestone. They approved it and then ended the contract without saying anything.

I moved on.

They left a public review that was alright. Now they are requesting a refund claiming that they didn't like the work. Meanwhile, their guidelines weren't great. But I've worked with vague guidelines before.

Anyway, I am satisfied with the work I submitted and would have provide revisions if needed. But now that the contract is done, what am I to do with this refund request? This has never happened to me before.

kinector · ‎03-25-2021

The client is trying to avoid paying altogether, that's the bottom line.

The work was done, it was already paid for. If the client wanted good stuff for money, they would have asked for the revisions and of course never ask for the refund.

As the feedback is already given and contract closed, there is nothing much the client can threaten you with.

Don't agree to the refund. Do nothing.

If the case goes into arbitration, the cost of the process is almost the same as the cost of the whole project, so the client won't go for it if they know how that process works. If the milestone they paid was less than that $300, then it doesn't make any sense to go and pay the arbitration fee. They'd lose money. 🤣

You're good. Move on and keep going! 👍

View solution in original post

kinector · ‎03-25-2021

The client is trying to avoid paying altogether, that's the bottom line.

The work was done, it was already paid for. If the client wanted good stuff for money, they would have asked for the revisions and of course never ask for the refund.

As the feedback is already given and contract closed, there is nothing much the client can threaten you with.

Don't agree to the refund. Do nothing.

If the case goes into arbitration, the cost of the process is almost the same as the cost of the whole project, so the client won't go for it if they know how that process works. If the milestone they paid was less than that $300, then it doesn't make any sense to go and pay the arbitration fee. They'd lose money. 🤣

You're good. Move on and keep going! 👍

24248695 · ‎03-25-2021

Thanks for this. Upwork support pretty much said the same thing. I realized that I was pretty much their first client as well. Therefore I'll take this as a lesson to look at client history more.

prestonhunter · ‎03-25-2021

When a contract is over, it is over.

A client should never request a refund after a contract is closed.

Refund thinking is harmful and potentially expensive to clients. Clients will have more success with their projects and save money if they decide they will thoughtfully choose the freelancers they hire, quickly fire underperforming freelancers, and never pay money to freelancers with the thought in the back of their minds that they will get the money back. The truth is, one a client sends money to a freelancer, it is highly unlikely that the client will ever be able to get it back. Even less likely AFTER a contract is closed and feedback has already been given.

shariqafridi · ‎08-10-2021

Hey Mikko,

Thanks for your meaningful reply on this topic.

I'm going through a similar scenario. But in my case, the refund is over $2000. The job is closed, and Upwork has suspended my profile for not being able to respond to the Dispute (which was reopened recently without my knowledge - I don't check my emails very much).

In my case, The client requested for the deliverables of Animation to be submitted by a specific. I delivered it, and client closed the project with a good review. But, in a few days, he came back, saying that he wants the refund as the animations are blurry (because of the intense optimization - Extra work that he specifically asked me to do). Now, I want to know if the Arbitration, in this case, is relevant/justified or not (since the project is already closed).

Please note that the amount is over $2K, so the client wants to go into arbitration and has already paid $291 for it. Do I really have to fight this arbitration? Or is it a misunderstanding?

Thanks,

Shariq

Upwork Freelancer

prestonhunter · ‎08-10-2021

re: "Do I really have to fight this arbitration?"

You do not need to fight this. You have the choice to fight or not fight.

You may choose to pay $291 for the opportunity to present your side of the story to an arbitrator, in the hope that you can receive all or part of the $2000 at stake.

Or you may do nothing, and pay nothing, and simply let the $2000 go to the client,

re: "Or is it a misunderstanding?"

There is a misunderstanding here: A misunderstanding between right and wrong.

The client misunderstood the difference between right and wrong when he hired you, let you do the work, and then tried to avoid paying you for the very work that he asked you to do.

tomzilla1 · ‎08-10-2021

Joe R wrote:
Hi all,

I recently had a fixed rate client for $300. I submitted the first milestone. They approved it and then ended the contract without saying anything.

I moved on.

They left a public review that was alright. Now they are requesting a refund claiming that they didn't like the work. Meanwhile, their guidelines weren't great. But I've worked with vague guidelines before.

Anyway, I am satisfied with the work I submitted and would have provide revisions if needed. But now that the contract is done, what am I to do with this refund request? This has never happened to me before.

It's just $300... refund them and then just mark as loss on your tax return. Not worth your time man.