I had similar happen here &yes it did leave a sour taste in my mouth
, especially as there were quite a few bits of high end designer stuff, including cashmere baby grows & matching cardigans, which were a gift & just really beautiful
It was a good friend of DHs that was complaining/worrying loudly with him about spending money on new baby clothes that wouldn't last a few weeks, didn't outrightly ask, but hinted & hinted, until DH asked me, there DD was only a few months younger than ours
I did say yes, didn't think it could really harm, as babies don't exactly wear stuff through - but I also made it very clear that some things were expected back, as we hoped to have another & also my cousin was trying & I would of loved to have passed the good bits onto her,
the Mum then specifically asked for the cashmere stuff & several other choice bits, not in a direct way, just went on about how she really loved them & how grateful she was - sort of presumed & put me on the spot a bit, but I didn't really see any harm as at that time we saw a lot of them
I eventually asked for them back & was given a bag of BHS tat, none of which I had ever given them - heard from others the Mum was selling stuff on e-bay - DHs friend was rightly embarrassed, but his DP seemed to have no quarms at all - it was the last thing she ever did get from us