When should you accept a credit note?

We often feel confused about what exactly we are entitled to when we return a product to the shop we bought it from.

Basically, it all depends on the reason the product is being returned. If it is defective, then as consumers we are protected by the Consumer Affairs Act and are hence entitled to more than just a credit note.

In this case, the retailer should either repair or replace the defective product, or if this is not possible, provide a credit note in part or full refund of the price paid. Hence, when consumers are legally entitled to a refund, being offered and accepting a credit note means getting less than what the law grants.

A credit note offers much less flexibility than money because it can only be redeemed at a particular retail outlet and, in some cases, if the shop is part of a chain, in that chain of shops.

Moreover, credit notes usually carry specific terms and conditions which must be observed, such as using the credit note within a particular time limit.

Therefore, before accepting a credit note, when you are entitled to more, it is advisable to first check the conditions on it and make sure that the trader has goods that you want to buy.

If, on the other hand, there is nothing wrong with the goods and the shop willingly accepts them back, then a credit note is more than what you are entitled to.

In these circumstances, it would be regarded as a change of mind. Hence, shops are free to apply customer care policies which consumers have to adhere to.

Fortunately, many retailers are willing to exchange or refund goods even if there is nothing wrong with them, provided consumers have proof of purchase and meet their terms and conditions.

However, when given a credit note, it is important to immediately check what restrictions apply.

It is best for both parties if these terms are written on the credit note to avoid any misunderstandings and doubts.

However, if a shop is not prepared to offer a credit note when you are returning unsuitable goods, you cannot legally insist on it.

Ms Vella is senior information officer, Consumer and Competition Division.

customer@timesofmalta.com, odette.vella@gov.mt