Well it's absolutely correct that you will need to process a refund – and you should set about doing this as quickly as possible in order to reduce the number of problems you are having as a result of this. Other than that, you will have to go through the claim process – with Packlink and with Hermes. I completely agree that they will decline liability and then you will have to consider further action. Packlink are out of the jurisdiction and so therefore you will have to proceed again