After numerous e-mails exchanged back and forth, I still have the same issue. I lost a book which I had on hold, because I could not download it. The library says I should contact Overdrive, and Overdrive says the matter should clear by itself in a few days. Meanwhile, it's been a week and nothing has changed.
If one cannot return the book prior to the expiry date, then I consider this as a major flaw of the system. What if I can read faster than a book in three weeks? What if I don't like to book and I want to return it? Nobody was able to answer these questions.
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