We are usually offered a credit note when we need to exchange a product and we do not find anything to our liking to exchange it with.

Sometimes a credit note is also offered when consumers realise we have made a wrong buying decision, not because there is a particular problem with the product purchased.

In these circumstances a credit note is offered as a solution not because there is any legal obligation on the part of the trader to offer a remedy to the consumer, but because the trader has decided to adopt good customer care policies and thus tries to help customers when the latter change their mind.

These kind of credit notes usually have specific terms and conditions attached to them which provide information on how they should be used.

The most important condition we need to pay attention to is the credit note’s expiry date. It is mandatory that we use a credit note before it expires because if we do not, we would lose it for good and end up with a worthless piece of paper.

Another condition worth paying attention to is whether or not the credit note can be used during the sales period. Most of the time this is not possible, especially when credit notes are used as a solution to change-of-mind situations or to wrong buying decisions.

As consumers, we should keep in mind that being offered a credit note when legally we do not have a right to one is already an extra benefit. Thus retailers can apply the terms and conditions they deem fit on how and when such a credit note can be used.

It is best for both consumer and retailer if these terms are clearly written on the credit note itself to avoid any misunderstandings and doubts that may generate unnecessary bad feelings.

Hence, before going to a shop with a credit note to buy products that are on sale, we should first check carefully whether there is any condition on the credit note that excludes such use.

If, on the other hand, there is no such condition, we are entitled to use the credit note whenever we want and on any product we want.

Credit notes are sometimes also offered to consumers when the product purchased is defective and cannot be repaired or replaced. In these situations, consumer law may entitle consumers to request part or full refund of the money paid and such a refund should be given in cash.

If we are offered a credit note and we accept it, this means we will be getting less than what the law grants us. Furthermore, once a credit note is accepted as a solution, we cannot change our mind and ask for a cash refund.

Gift vouchers are different from credit notes in that these are usually purchased by consumers as a gift. These kind of vouchers are appealing because those receiving them can choose their own gift.

However, gift vouchers differ greatly from cash and may carry a number of limitations. To avoid unpleasant surprises, before buying or a gift voucher or if you receive one as a gift, carefully check out the terms and conditions on how to use it.

Some gift vouchers carry an expiry date and this should be strictly observed. There are also different ways how a gift voucher could be used. For instance, some have to be used at one go, while others can be used on more than one occasion.

If we want to use a gift voucher during sales, we should first check that there is no condition on the voucher prohibiting such use. Usually, gift vouchers are much more flexible than credit notes and rarely have such limitations.

If, however, among the terms and conditions of the voucher there is a clause that does not allow consumers to use the voucher during the sales period, there is nothing illegal about such a condition and it must therefore be observed.

The terms and conditions written on a gift voucher must not only be observed by consumers but also by the establishment issuing the voucher. When this is not the case, we can seek redress by submitting a claim with the Office for Consumer Affairs of the Malta Competition and Consumer Affairs Authority.

customer@timesofmalta.com

odette.vella@gov.mt

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