credit note instead of refunds

[JhnStcks]

If a customer wants to return their order because it is unsuitable for them (not damaged or wrong product), I seem to remember reading that you would be within your rights to give them a credit note for your store rather than a refund.

Just wondering if anyone actualy uses this practice?

[Baa]

I cannot find a thing that even suggests you can refund using a credit note. I don't see why you can't though. Were it me, I'd ring Trading Standards to check.

[john]

With any sale the consumer has a legal right to a seven working-day 'cooling off' period.

Although as a seller, if the goods do not fall within the "consumer rights act" (faulty, damaged, not as described etc) you are not legally required to give a refund, (as the purchase was the buyers decision and not under duress) but as a good will gesture a credit note can be issued.

But if you are not convinced please see consumerdirect or directgov, or even give them a call.

[Baa]

With any sale the consumer has a legal right to a seven working-day 'cooling off' period.

Although as a seller, if the goods do not fall within the "consumer rights act" (faulty, damaged, not as described etc) you are not legally required to give a refund, (as the purchase was the buyers decision and not under duress) but as a good will gesture a credit note can be issued.

But if you are not convinced please see consumerdirect or directgov, or even give them a call.

When the item was bought direct/face to face with the retailer or retailers business then under the Sale of Goods Act the retailer can refuse a return where the goods are fit for purpose and are as described. An acceptance of return of this kind is goodwill but this is where mail order differs and the Distance Selling Regulations come in.

Where items are bought mail order, DSRs give the consumer the right to cancel orders regardless of condition, therefore it's not goodwill but legal requirement to accept cancelled orders where the product is correct, fit for purpose and as described that are not covered under the exemptions.

The DSRs simply state, and I quote,

Recovery of sums paid by or on behalf of the consumer on cancellation, and return of security
     14.  - (1) On the cancellation of a contract under regulation 10, the supplier shall reimburse any sum paid by or on behalf of the consumer under or in relation to the contract to the person by whom it was made free of any charge, less any charge made in accordance with paragraph (5).

To me this suggests refunding the money but I'm not an expert hence my suggestion to contact trading standards.

[drew]

Its really down to you and your customer.

If you willing to issue a credit note, and your customer accepts that, then it fine. If the customer wants cash, give them cash.

I sometimes get asked if I can issue a credit note rather than a refund. I'm fine with that, and as long as the customer is happy, I'm happy.

I would never get to the situation where I only offer credit notes, as I think that would get me in trouble.

[conran]

I do believe that you are legally required to accept return, with the "cooling off" laws. Offering a credit note *instead of* allowing refund would breach distance trading laws.

You can offer the option of a credit note though. Doing this it is advisable to keep a log of all instances with evidence (email, letter, etc) that this was what was agreed with the customer.

That's my take on it.

[scotserve]

I do believe that you are legally required to accept return, with the "cooling off" laws. Offering a credit note *instead of* allowing refund would breach distance trading laws.

You can offer the option of a credit note though. Doing this it is advisable to keep a log of all instances with evidence (email, letter, etc) that this was what was agreed with the customer.

That's my take on it.

Yes, thats my understanding as well

Interestingly though if they were to accept a credit note rather than a refund, they have then given up their rights under the dsr and cannot then change their mind.
Its a bit like accepting a replacement instead of a refund for faulty goods, you give up a certain amount of legal rights.

[jack240302]

Just out of interest do the same rules apply when buying in a high street store, do they have to refund in full as well.

[JhnStcks]

I think if you have a valid reciept they have to refund, if you dont have a receipt they give a credit note.  Not sure what the law is on this though.

[Baa]

Just out of interest do the same rules apply when buying in a high street store, do they have to refund in full as well.

No they don't have to refund at all for anything other than faulty goods. If they do provide some kind of recompense part or whole, which many do, it's of their choosing and that's why many offer a credit note.

This is detailed under the Sale of Goods Act, we have to comply with that as well as the DSRs, obviously the DSRs overide some areas.

[scotserve]

I think if you have a valid reciept they have to refund, if you dont have a receipt they give a credit note.  Not sure what the law is on this though.

As Baa says there are different rules for Bricks and mortar shops, they have to comply with the sale of goods act  but not DSR, this means goods must be of merchantable quality and fit for their purpose, if not the the client can demand a refund they are not required to accept a credit note or a replacement in fact accepting a replacement needs to be considered wisely as it may affect your rights to getting a refund. Virtual businesses on the other hand have to comply with both  the DSR's and the sale of goods act.
This is one thing i find interesting about dropshipping is that the average signupee has not got a clue as to the legalities involved in their business and resort to information found on a forum and or provided by their supplier who of course has a vested interest, terms are often just copies of someone elses, since the consumer laws are different and more stringent for Online businesses it is wise to check out your trading terms thoroughly and more importantly making sure you client accepts them before the sale is concluded. 

[jack240302]

Cheers.

I know when i have bought an item in the sales they tell you you can exchange or get a creadit note.

But one time my man bought a £300 jacket on a whim & decided he didnt like it but he wouldnt take it back so i got the job to do it.

It wasnt a sale item & i had a receipt but they tried to offer me a credit note.  I had to argue for ages but eventually got a refund.

My coward of a man was standing outside on the corner waiting on me!!

[scotserve]

Cheers.

I know when i have bought an item in the sales they tell you you can exchange or get a creadit note.

But one time my man bought a £300 jacket on a whim & decided he didnt like it but he wouldnt take it back so i got the job to do it.

It wasnt a sale item & i had a receipt but they tried to offer me a credit note.  I had to argue for ages but eventually got a refund.

My coward of a man was standing outside on the corner waiting on me!!

This though is down totally to the shop themselves under the sale of goods act you bought it and once the money is in the till it is your problems unless faulty they do not have to give a refund or indeed a credit note.

Think of the downside for the shop, they have this £300 jacket and sell it - and then order a replacement from the suppliers, two days later the original jacket comes back to the shop and they now have 2 - seriously affecting their cash flow
It is a common misconception ( although misconception isnt actually appropriate to your state is it :-) ) that if you have a receipt you are "entitled" to a refund or credit note if you change your mind - you are not it is down the shop themselves how they deal with it. I had a mate who's wife was always well dressed and new outfit whenever we went out ( really pissed off my wife) til i found out she bought something on the Friday from BHS and returned it on the Monday "no questions asked" this type of sales strategy backfired on other retailers.
When I had a shop I used to get the "I know my rights" type twats and if that was their attitude I sent them packing.