The correct answer to this question depends on the reason why we need to return the purchased goods. If the products we need to return are faulty or are not as agreed to with the seller when they were purchased, then legally we are not entitled to a credit note but to repair, replacement or a refund.
If the goods are faulty and can be repaired without causing us a significant inconvenience, then the seller may try to repair the defective goods. Should the repair not be sufficient to resolve the problem, then the seller should replace the defective product.
A refund may be opted for when neither repair nor replacement are possible solutions. In such a situation, if we are entitled to a refund and are instead offered a credit note, we should not accept it.
In this case, the seller cannot force us to accept the credit note and it is not in our best interest to do so. A credit note acts like a voucher that can only be used in a particular shop or chain of shops that issued the credit note. Furthermore, credit notes usually have terms and conditions that bind us as to how and when to use them, such as using the credit note within a particular time-frame.
When we’re legally entitled to a refund, we shouldn’t accept a credit note
Hence, before accepting a credit note when we are entitled to more, it is advisable to check what limitations it has and make sure that the seller has goods that we need or want to buy.
Another situation where we may be offered a credit note is when we change our mind about a product. In this case, we are not legally entitled to return goods and request a solution. Fortunately, in such instances, most retailers are willing to exchange or refund the purchased goods, provided we are in possession of the proof of purchase and that we adhere to the shop’s return policies. If we find ourselves in this situation and are offered a credit note, we should accept it and be thankful that we have been offered a solution we are not legally entitled to.
When we are given a credit note, it is our responsibility to check what restrictions apply or, in other words, how the credit note should be used. The trader giving us the credit note should make sure that any restrictions he wants to implement on the its use are clearly written on the same credit note.
We should check if the credit note has an expiry date and also if there are any particular periods when it 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 a seller refuses to provide us with a credit note for an unwanted item, we cannot oblige him to do so.
odette.vella@mccaa.org.mt
Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.