I thought Overdrive worked the same for everyone. I didn't realize a library could set it up to make returns impossible. What a silly way to operate. If I finish a physical book I always return it before the due date. I should be able to do that for e-books as well.
I agree that I think that you should be able to return a borrowed e-book early. Since I cannot borrow e-books from my library (they don't do kindle in Canada) I looked up if you could return library e-books early. And this is what i found. This is exactly what i do to return a borrowed e-book from amazon early.
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Return a Library Book
To return a library book before the loan period ends, visit Manage Your Content and Devices.
Since the length of a book loan is determined by the library, check with your public library to find out when to return a borrowed book. You'll receive a courtesy reminder e-mail from Amazon three days before the book is due and another e-mail when the loan period has ended.
To return a library book:
Go to Manage Your Content and Devices.
From Your Content, select the Actions button next to the book that you want to return.
Select Return This Book, and then select Yes in the pop-up window.