Returning purchased items is not uncommon. In these situations, consumers may have different expectations as to the options retailers should offer them. Some consumers are happy with a simple exchange of the item purchased or a credit note, while others expect nothing less than a cash refund. Despite these expectations, the reality is that there is a legal framework that gives consumers the right to claim a full refund when certain criteria are met.
The determining factor as to whether or not consumers are legally entitled to more than a credit note when returning goods bought, essentially depends on the reason why the purchased item is returned to the seller.
If the reason is a change-of-mind situation or a wrong buying decision, legally the seller is not obliged to offer a remedy. Consumers should be aware that when they buy goods, the sales transaction is final and legally binding. This means they cannot just decide to return any unwanted goods and expect a solution from the seller.
However, fortunately for consumers, most retailers have voluntary return policies and are willing to take back the unwanted goods and offer consumers a choice between exchanging the goods with something else or a credit note. Some sellers also offer cash refunds.
Shop notices stating ‘No cash refunds’ must be ignored as company policies can neither diminish nor take away consumers’ legal rights
These solutions are often offered on the condition that consumers present the original receipt and that unwanted items are returned unused. So, if in these circumstances consumers are offered a credit note, they should accept it, as they are getting more than they are legally entitled to.
Once a credit note is offered, consumers must be clearly informed on how and by when the credit note should be used. To avoid misunderstandings, the credit note’s terms and conditions should be written on the credit note itself. It is then the consumers’ responsibility to read and follow these terms of use.
Consumers should pay special attention to the expiry date and whether there are any situations where the credit note cannot be used, such as during the sales season. Care should also be taken not to lose the credit note, because if lost, consumers may end up with nothing. Consumers must also remember that if a seller refuses to give them a credit note for unwanted items, they do not have the legal right to insist to be given one.
Consumers’ legal rights are diminished when instead of a refund they are offered a credit note after returning a faulty product that can neither be repaired nor replaced by the seller. The Consumer Affairs Act stipulates that when goods are faulty, the retailer should first try to repair or replace the defective good. If these two remedies are either not possible or are going to cause a significant inconvenience to consumers, then the latter may refuse the repair or replacement and request a cash refund. In such situations, consumers should not accept a credit note as it would mean getting less than what the law grants.
Shop notices stating ‘No cash refunds’ must be ignored as company policies can neither diminish nor take away consumers’ legal rights. Furthermore, consumers should not forget that once they willingly accept a credit note, then they may not be allowed to change their mind and return the credit note for a refund.
The legal right to a refund also applies to faulty goods bought online. In this situation, if sellers require consumers to return the faulty product before issuing a refund, any transport costs must be paid by the seller.
While credit notes often offer additional benefits to consumers and also help maintain a good relationship between consumers and traders, in certain situations they may diminish consumers’ legal rights.
By being aware of their rights and making informed buying decisions, consumers can protect themselves from unintended repercussions and ensure that they receive the remedies to which they are entitled under consumer protection laws.
Any difficulties concerning consumer rights and responsibilities about credit notes may be referred to the Office for Consumer Affairs at the MCCAA through the ‘Contact Us’ form on the MCCAA website. This office can also be contacted via telephone on 8007 4400 or 2395 2000 or by sending a private message on the MCCAA Facebook page.