If the problematic goods cannot be repaired or replaced, we do not have to accept a credit note instead of our money.

When we need to return purchased goods, there are some times when we are offered our money back and others when we are only offered a credit note.

Do we have the right to decide between a cash refund or a credit note? In which situations can we insist on getting our money back and when should we be grateful to the seller for offering us a credit note? The answer to these questions depends on why we are returning the purchased goods.

The products we buy should be as agreed with the seller during the contract of sale: defect-free and fit for the purpose for which we need them.

Furthermore, the goods purchased must be fit for the purpose for which goods of the same type are normally used, and must be of a quality and perform in a way one would normally expect from goods of the same type.

If any of the above requirements are not met, then we are legally entitled to go back to the seller and claim a remedy. In such a situation, we may ask for a cash refund if the problematic goods cannot be repaired or replaced.

If this is the case, we do not have to accept a credit note instead of our money.

These same rights apply if the defective good is bought at a reduced price, unless the defect was pointed out to us during the sale and we accepted it and finalised the purchase.

If we are offered a credit note instead of a cash refund and are inclined to accept the offer, before doing so we should remember that a credit note is much less flexible than money, as it can only be redeemed at a particular retail outlet or chain of outlets.

We should remember that a credit note is less flexible than money

Moreover, credit notes usually carry specific terms and conditions that have to be observed, such as using the credit note within a particular time.

Hence, before accepting a credit note, if we are entitled to more, it is advisable to check what limitations the credit note has and make sure that the seller has goods we want to buy.

Furthermore, we should keep in mind that once we accept a credit note, even if we are we are legally entitled to more, we cannot change our mind and return it for a cash refund.

Another possible scenario is that we decide to return good that we bought because we change our mind and no longer want them. In this situation, the retailer is under no legal obligation to accept the unwanted goods, let alone give us our money back.

However, as a gesture of goodwill, many sellers are willing to accept the goods back and offer us the possibility to exchange them with something else or with a credit note. If we find ourselves in this situation, we should thank the seller and accept the credit note.

When given a credit note, it is important to immediately check what restrictions apply. To avoid any possible misunderstandings, the credit note’s terms and conditions should be clearly written on the credit note itself.

Special attention should be given to the expiry date and also to whether there is any particular time during the year when the credit note cannot be used, such as during sales.

Care should be taken not to lose the credit note because if we do, legally, we will not have any rights and will end up with nothing.

If we change our mind about a purchase and the seller refuses to give us a credit note, we cannot legally insist on receiving one.

odette.vella@mccaa.org.mt

Ms Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.