When we buy a product and it turns out to be unfit or faulty, we have legal rights that allow us to claim a free remedy. The remedies the law provides are firstly repair or replacement.
When such remedies are not possible or, if opted for, may cause us a significant inconvenience, then legally we are entitled to claim a part or full refund. In this situation, the refund should be provided in cash, cheque or refund to a credit card account.
Sometimes consumers are offered their refund in the form of a credit note. When this happens, they have the right to refuse it and insist on getting a money refund. If consumers accept the credit note they cannot later return it and ask for a money refund.
Consumers should bear in mind that a credit note is not equivalent to money, as it has a number of limitations as to how and where it can be used. In fact, a credit note is more similar to a voucher, and can only be used in a particular shop or chain of shops that issued the credit note.
Moreover, credit notes usually carry specific terms and conditions that need to be observed, such as a set timeframe. Thus, before accepting a credit note, it is advisable to check what limitations the latter has and to make sure the seller has goods you might need or want to buy.
Another situation whereby a credit note can be offered is when consumers return unwanted goods. In this case, there is nothing wrong with the goods but consumers simply change their mind and want to return them. When this happens, we do not have the legal right to ask for a remedy.
Fortunately, in most cases, retailers are willing to exchange or refund the purchased goods, provided that the consumer has proof of purchase and adheres to the shop’s return policies.
If, in such as situation, consumers are offered a credit note, they should accept it and consider themselves lucky to be offered a solution when, in reality, they had no legal rights.
It is important that consumers are clearly informed as to how to use a credit note. It is best if the terms and conditions of the credit note are written on it, therefore avoiding any misunderstandings and doubts.
Consumers should pay special attention to the expiry date or whether there are any particular periods during the year when the credit note cannot be used, such as during sales. Furthermore, care should be taken not to lose the credit note because if lost, consumers will probably end up empty-handed.
If a seller refuses to offer a credit note for an unwanted item, unless there was a pre-sale agreement about the credit note, consumers cannot legally insist on being given a credit note.