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I am also a Flipkart plus member since 2019.
The same scenario happenned with me as well. On 22nd Feb 22, I make a purchase from Flipkart using pay later and it came witbout any brand tag. The quality was not good and hence I returned the product. The return was cancelled multiple times as they did not the brand tag. I informed that the it came without the brand tag but it had other price and QR tag. Later the return was successful but in the mean while the outstanding amount had to paid by 5th of March but I did not made the payment as I already returned the product.
On 7th the amount was credited back to Flipkart pay later. But since ever than I am not able to use the pay later service. I called more than 50 times sent emails and I received response that the account is suspended. I went to IDFC First bank (their lending partner) and saw there was some late payment charges. I cleared all those recurring charged which I was not sure why it was charged.
But now it shows my credit limit for pay later in the app but I am not able to use it. And it might impacti ng my cibil score as well. SUCH DISGUSTING!