Understanding Your Refund Rights in the UK
When a company refuses to refund you, it’s important to understand your legal rights as a consumer in the UK. The law offers strong protection if you’ve bought goods that are faulty, damaged, or not as described. Knowing these rights can help you approach the company with confidence and take the right steps to resolve your issue.
Your Legal Right to a Refund
Under UK law, most refund rights are set out in the Section 20 of the Consumer Rights Act 2015. This law states that if the goods you buy are faulty, not as described, or unfit for purpose, you usually have the right to a refund, repair, or replacement. The law applies whether you bought the item in a shop or online.
When Are You Entitled to a Refund?
You are entitled to a full refund if you return faulty goods within 30 days of receiving them. This is known as the “short-term right to reject.” After this 30-day period, you may still be entitled to a repair or replacement. If these options are unsuccessful, you can then ask for a refund or a price reduction.
Common situations where you can claim a refund include:
The item doesn’t work as it should (for example, a kettle that won’t boil water).
The goods are damaged when you receive them.
The product doesn’t match its description or what was advertised.
If you bought something online or over the phone, you might also have extra rights to cancel and get a refund within 14 days, even if the goods aren’t faulty. This is called the “cooling-off period.”
Time Limits and Conditions
The time you have to claim a refund depends on the problem and how you bought the item:
30 days: For most goods, you have the right to reject and get a full refund if you act within 30 days of purchase or delivery.
After 30 days: You can usually ask for a repair or replacement. If that doesn’t fix the problem, you may still be able to claim a refund, but the company might make a deduction for use.
Six months: If a fault appears within six months, it’s assumed the problem was there from the start, unless the seller can prove otherwise.
Up to six years: In England, Wales, and Northern Ireland, you can make a claim in court for faulty goods up to six years after purchase (five years in Scotland), but you’ll need to show the fault was present when you bought the item.
Refund, Repair, or Replacement: What’s the Difference?
Refund: Getting your money back. This is usually available within the first 30 days for faulty goods.
Repair: The company fixes the problem with the item.
Replacement: You receive a new item instead of the faulty one.
You don’t have to accept a repair or replacement if you’re still within the 30-day period and would prefer a refund. After 30 days, the company can usually offer to repair or replace the item first.
Keep Your Receipts and Proof of Purchase
To make a successful claim, you’ll need proof of purchase. This could be a receipt, bank statement, or even an email confirmation for online orders. Keeping these documents makes it much easier to show when and where you bought the item, and what you paid.
For more information about your rights and what to do if something goes wrong with a purchase, see our guide on problems with purchased goods.
Understanding your refund rights is the first step in resolving issues with a company. If you know the law is on your side, you’re in a stronger position to get the outcome you want.
Steps to Take if a Company Refuses to Refund You
If a company refuses to refund you for faulty or unsatisfactory goods, it’s important to follow a clear and structured process to protect your rights as a consumer. Here’s what you should do:
1. Communicate Clearly and Politely with the Seller
Start by contacting the company directly. Explain the issue with your purchase and state why you believe you are entitled to a refund. Under the Consumer Rights Act 2015, you have the right to a refund if goods are faulty, not as described, or unfit for purpose. Be calm and polite, as this often leads to better results.
Provide details such as your order number, the date of purchase, and a description of the problem. Ask for a refund and specify how you would like it to be processed (for example, returned to your original payment method).
2. Write an Effective Refund Request Letter or Email
If your initial contact doesn’t resolve the issue, put your refund request in writing. A written record helps demonstrate that you have tried to resolve the problem directly. Your letter or email should include:
Your contact details and order information
A clear description of the problem
Reference to your rights under the Consumer Rights Act 2015
The outcome you are seeking (such as a full refund)
If you’re unsure where to start, you can use letter templates for refund requests to help you draft your message. These templates guide you in including all the necessary information and presenting your case clearly.
3. Keep Records of All Communications
It’s essential to keep copies of all emails, letters, receipts, and any responses from the company. If you speak to someone by phone, note the date, time, and the name of the person you spoke to, along with a summary of what was discussed. These records will be valuable if you need to escalate your complaint or provide evidence later.
4. What to Do if the Company Ignores or Refuses Your Request
If the company does not respond or refuses to give you a refund, you have several options:
Send a further written reminder: Restate your request and give a reasonable deadline for a response (for example, 14 days).
Escalate the complaint: Ask if the company has a formal complaints procedure or if they are a member of an alternative dispute resolution (ADR) scheme. ADR can help you resolve the dispute without going to court.
Consider legal action: If you still don’t get a satisfactory response, you may be able to make a claim through the small claims court. This is suitable for most refund disputes under £10,000 in England and Wales.
Remember, staying organised and following these steps will strengthen your position. If you need more guidance on writing to the company, don’t forget to check the letter templates for refund requests to ensure your communication is clear and effective.
Alternative Ways to Get Your Money Back
If a company refuses to refund you, there are several alternative ways you might still be able to get your money back. Understanding your options can help you take the right steps based on how you paid and the type of purchase you made.
Use Warranties or Guarantees
If the retailer won’t offer a refund, you may be able to claim using a warranty or guarantee provided by the manufacturer or the store. Warranties and guarantees are promises that a product will meet certain standards for a set period. If your item is faulty or breaks down within this time, you can often get a repair, replacement, or sometimes even a refund – regardless of the retailer’s response. Always check the paperwork or the manufacturer’s website for details on how to make a claim.
Claiming a Refund Through Your Card Provider or PayPal
If you paid by credit card, debit card, or PayPal, you might have extra protection. For credit card purchases over £100 (and up to £30,000), Section 75 of the Consumer Credit Act 1974 allows you to claim a refund directly from your card provider if something goes wrong with your purchase. Debit card payments may qualify for a “chargeback,” where your bank can try to recover the money from the seller’s bank. PayPal also offers its own dispute resolution process for buyers.
To learn more about these options, see our guide on getting your money back if you paid by card or PayPal.
Cancelling Within the 14-Day Cooling-Off Period
If you bought something online, by phone, or by mail order, you usually have the right to cancel your order for any reason within 14 days of receiving it. This is called the “cooling-off period” and is protected under the Consumer Contracts Regulations 2013. You don’t need to have a fault with the item to use this right.
For a step-by-step guide, read about how to cancel a purchase within 14-day cooling-off period or check the detailed advice on the 14-day cooling-off period from Citizens Advice. Remember, the cooling-off period starts the day after you receive your order, and there are some exceptions – such as for personalised or perishable items.
Claiming Compensation for Damage
If the faulty product caused damage to your property or even personal injury, you may have the right to seek compensation in addition to a refund. The Consumer Protection Act 1987 allows you to claim if a defective product causes harm. For more information on your rights and how to proceed, see how to claim compensation if an item or product causes damage.
Exploring these alternative routes can help you recover your money or seek compensation when a refund is refused. If you’re unsure which option applies to your situation, consider seeking independent advice or referring to the official guidance linked above.
What to Do if the Company Goes Out of Business
If a company refuses to refund you and then goes out of business, it can be much more difficult to get your money back. When a business stops trading, it may no longer have the resources or staff to process refunds or handle complaints. Here’s what you need to know and the steps you can take:
1. Check the Company’s Status
First, confirm whether the company has truly stopped trading or entered formal insolvency, such as administration or liquidation. Sometimes businesses temporarily close or change names, so it’s worth checking official records or company announcements.
2. Understand How This Affects Your Rights
If a company has gone out of business, your usual consumer rights under the Consumer Rights Act 2015 still apply, but enforcing them becomes more complicated. You may not be able to claim a refund directly from the company, especially if it has no assets left or is being wound up.
3. Try Alternative Routes to Get Your Money Back
Paid by Credit Card: If you paid for goods or services costing between £100 and £30,000 by credit card, you may be able to claim a refund from your card provider under Section 75 of the Consumer Credit Act 1974.
Paid by Debit Card: For debit card payments, ask your bank about a chargeback, which may help you recover your money if the company is no longer trading.
PayPal or Other Payment Services: If you used a third-party payment service, check if they offer buyer protection schemes.
4. Claiming as a Creditor
If the company is in liquidation or administration, you can register as a creditor. This means you’ll be added to a list of people the company owes money to. However, in practice, customers often receive little or no compensation, as secured creditors (like banks) are usually paid first.
5. Where to Get Help
If you’re unsure what to do next or need help understanding your options, it’s a good idea to seek advice. You can find clear guidance on what steps to take if a company stops trading or goes out of business.
6. Keep Records
Whatever action you take, keep copies of all receipts, order confirmations, and any correspondence with the company or your bank. This will help support your case if you need to make a claim through your card provider or register as a creditor.
While it can be frustrating when a company goes out of business before resolving your refund, acting quickly and exploring alternative routes can improve your chances of recovering your money.
Escalating Your Refund Dispute
If you’ve tried contacting the company and haven’t received a satisfactory response about your refund, you don’t have to give up. There are formal ways to escalate your dispute and seek a fair outcome. Here’s how you can take things further:
Using Alternative Dispute Resolution (ADR)
Alternative Dispute Resolution (ADR) schemes offer a way to resolve disputes without going to court. ADR is often faster, less formal, and less expensive than legal action. Common types of ADR include mediation and arbitration.
Many retailers are members of an ADR scheme or have access to one. Check the company’s website or ask their customer service if they’re signed up to an ADR provider. If they are, you can apply to the scheme – usually after you’ve received a final response from the company or if eight weeks have passed since you first complained.
An independent third party will review the case and suggest a solution. While the outcome isn’t always legally binding, most companies follow the decision made by the ADR scheme.
Making a Claim Through the Small Claims Court
If ADR doesn’t resolve your issue, or if the company doesn’t use an ADR scheme, you can consider making a claim through the small claims court (also known as the County Court for England and Wales, or the Sheriff Court for Scotland). This process is designed for straightforward disputes about money or goods, usually under £10,000 in England and Wales, or £5,000 in Scotland.
To start a claim, you’ll need to:
Gather evidence (see below for tips).
Complete the relevant claim form online or by post.
Pay a court fee (the amount depends on your claim value).
Clearly explain your case and what outcome you’re seeking.
The court will review your claim and may arrange a hearing if the matter isn’t settled beforehand. If you win, the court can order the company to pay you the refund.
Tips for Preparing Your Case and Gathering Evidence
Whether you’re using ADR or the small claims court, preparation is key. Collect as much evidence as possible to support your case, such as:
Copies of receipts, invoices, or proof of purchase.
Written correspondence with the company (emails, letters, or messages).
Photos or videos showing the fault with the goods.
Notes of phone calls, including dates and what was discussed.
Any terms and conditions or warranty details.
Organise your documents clearly and keep copies of everything you submit.
When to Seek Legal Advice or Consumer Protection Help
If your dispute is complex, involves a large sum of money, or you’re unsure about your rights, it might be worth getting legal advice. You can also reach out to consumer protection organisations for guidance on your next steps.
For more detailed support and to explore your options for escalating a refund dispute, you can get more help with consumer issues.
Taking these steps can give you a stronger chance of getting your refund and help ensure your consumer rights are protected.
Additional Consumer Rights and Related Issues
Additional Consumer Rights and Related Issues
When seeking a refund, it’s important to understand that your rights as a consumer in the UK cover a wide range of scenarios beyond faulty goods. Here’s what you need to know about some common related issues – and how to protect yourself.
Goods Haven’t Arrived or Were Mispriced
If you’ve paid for something but it hasn’t turned up, you have legal protection. The Consumer Rights Act 2015 states that goods must be delivered within the timeframe agreed, or within 30 days if no time was set. If the item still hasn’t arrived, you can take specific steps to get your money back. For detailed guidance, read what to do if something you ordered hasn’t arrived.
Mispriced items can be another tricky area. While shops don’t always have to sell you an item at the displayed price, your rights depend on where and how you made the purchase. For a full explanation of your position, see if you bought a mis-priced item.
Counterfeit and Stolen Goods
If you suspect that goods you’ve bought are counterfeit (fake) or stolen, you have rights and responsibilities. Selling counterfeit goods is illegal, and you’re entitled to a refund from the seller. You should also consider reporting the incident to help prevent others from being affected – find out how to report fake or counterfeit goods.
If you think you may have unknowingly bought stolen goods, the law is clear: you don’t have to keep them, and you may have to return them to their rightful owner. Learn more about your options and next steps if you think you’ve bought stolen goods.
Refunds for Faulty Digital Downloads
Digital content – like music, films, apps, or games – comes with its own set of consumer rights. Under the Consumer Rights Act 2015, digital downloads must be as described, fit for purpose, and of satisfactory quality. If you buy a faulty download, you’re usually entitled to a repair, replacement, or refund. For more on this, see our dedicated guide to refunds for faulty digital downloads.
Spotting and Avoiding Scams When Seeking Refunds
Unfortunately, scams targeting consumers seeking refunds are common. Fraudsters may pose as legitimate companies or offer to “help” recover lost money for a fee. Always be cautious of unexpected emails, calls, or messages, and never share personal or financial information unless you’re certain of the recipient’s identity. For expert advice on staying safe, read these spotting and avoiding scams expert tips.
Related Financial Product Issues
Problems with refunds can also arise with financial products, such as insurance or mortgages. If you believe you were mis-sold a mortgage, you may have rights to compensation – learn more in our guide to mis-sold mortgage in the UK your guide to rights & remedies. Similarly, if you’ve had trouble with problems with payment protection insurance (PPI), there are steps you can take to claim back what you’re owed.
Understanding these additional rights and related issues can help you feel more confident when dealing with companies that refuse refunds. If you’re unsure about your situation, exploring the resources above can provide further clarity and support.
Summary and Getting Further Help
If a company in the UK refuses to give you a refund for faulty or unsatisfactory goods, it’s important to follow a clear process to protect your rights. Start by reviewing your consumer rights under the Consumer Rights Act 2015, which generally entitles you to a refund, repair, or replacement if goods are faulty, not as described, or unfit for purpose. Always contact the seller first, explain the issue clearly, and state what resolution you are seeking. If possible, communicate in writing (such as by email) so you have a record of your conversation.
Keep copies of all correspondence, receipts, and any evidence related to your purchase and complaint. Good record-keeping can make a significant difference if you need to escalate your claim or prove your case later on.
If the company still won’t refund you, consider your payment method. You may have extra protection if you paid by credit card, debit card, or PayPal. For step-by-step guidance on how to claim a refund through your card provider or PayPal, see the advice from Citizens Advice.
Should the issue remain unresolved, you can escalate your complaint using official routes such as alternative dispute resolution (ADR) schemes or, as a last resort, the small claims court. Always use recognised and reputable channels – be cautious of unofficial services or anyone asking for upfront fees to recover your money, as these could be scams.
If you need tailored advice or further support with your consumer dispute, you can get more help with consumer issues. Taking the right steps and seeking trusted advice will give you the best chance of resolving your refund issue successfully.
