A quick guide to consumer protection, rights and refunds

• In-store purchases and returns
• Online purchases and returns
• What if the retailer refuses to give me a refund?
• What if the item has a guarantee or a warranty?
• What about credit card payment protection?
• What are my cancellation rights for financial services?

When we buy something we want, we often don't consider what happens if we need to return it or find a fault. Your right to return an item or request a refund depends on where you made the purchase, for example, online or in-store. And the reason you want to return it, for example, it is faulty, or you simply decided you don’t like it. 

Unfortunately, legislation and rules are not always common knowledge or clear. 

In-store purchases and returns

In the UK, consumer refund rules are set by two pieces of legislation: the Consumer Rights Act 2015 and the Consumer Contracts Regulations 2013. These generally cover returns, refunds, and repairs for goods, services, and digital content. Essentially, goods must be sold as described, fit for purpose, of satisfactory quality, and last a reasonable time. 

More importantly, under the Consumer Rights Act 2015, if you buy something at a shop that is faulty, you are entitled to a full refund in most cases for up to 30 days. After 30 days, you lose some rights to reject an item. However, you can still request a repair or replacement or a refund if this doesn't work for up to six months.

If you buy an item in-store and simply change your mind or decide you don’t want it, legally, you don’t have a right to a refund, even if it is returned within 30 days. In practice, most major UK retailers have a policy that allows for the return of unwanted goods—even though it is not legally required. 

Retailers are not always as generous with returns during sales events, and there may be exceptions. So, it is worth checking the returns policies when budgeting for Black Friday and Cyber Monday, or other similar events.

When a store has a returns policy, it must follow it. Return policies are normally shown on receipts and signs in-store. You can also ring the retailer's customer services line to learn about its returns policy.

It is different if the item is bought online - more on this next.

DID YOU KNOW? If the item you purchased has a fault, you could be entitled to a full refund, and you do not need a receipt, as long as you can prove you bought it from the store. For example, you could use your bank statement.

Online purchases and returns

Online purchases include all the rights you get with in-store purchases. For example, if an item is faulty and you return it within 30 days, you should get a refund. Additionally, goods must be sold as described, fit for purpose, of acceptable quality, and last the expected time—just as is required with goods bought at a store. However, there is an added "bonus". 

If you change your mind for any reason, you usually get a full refund if you return the item within 14 days. Under the Consumer Contracts Regulations 2013 law, there does not have to be something wrong with the item. Once you've cancelled an order, you have a further 14 days to return the items.

These include items bought online, over the phone, and via postal order. There are exceptions, such as perishable items like food, sealed items that have been opened, toiletries, personalised items and items that date quickly, such as magazines and event tickets.

The same applies to services you buy online. However, if you agree to a service starting from day one and then cancel within 14 days, you may be charged for the days used.

What if the retailer refuses to give me a refund?

It's possible a retailer may not want to help you. Sometimes, staff may not be trained correctly or fully aware of your consumer rights. They may even try to direct you to the manufacturer.

Often, after stating your rights, a retailer may be more willing. If you file a complaint with the retailer and still haven't succeeded, you can contact Citizens Advice services at 0808 223 1133 (or 0808 223 1144 for a Welsh-speaking adviser). They may be able to assist you further.

What if the item has a guarantee or a warranty?

A guarantee or warranty is extra protection on top of your statutory rights under consumer law. However, you should go to the retailer first, especially if the item is faulty within the first six months of the purchase. A guarantee is usually free and comes with the product you have purchased. It is also legally binding.

A warranty normally comes at a cost and can include a premium, a bit like insurance cover. Warranties don’t always cover the whole item. Certain product parts may not be included; for example, a warranty on a car may exclude wear and tear parts like tyres and breaks.

What about credit card payment protection?

All credit cards, whether purchases were made with balance transfer credit cards or interest-free credit cards, come with added purchase protection, known as Section 75 of the Consumer Credit Act 1974. Purchases must be between £100 and £30,000 (in part or in full) to be covered by your credit card provider. 

However, you should first contact the retailer or the seller to resolve the issue. If, despite your best efforts, the issue remains unresolved or the seller refuses to help, you should contact your credit card provider. 

You can claim if:

• The ordered goods or services don’t arrive
• Goods or services are not as described when purchased.
• Goods or services were defective.
• The seller goes bust and does not provide the goods or services.
• Goods or services were bought online, in-store, by telephone, mail, or overseas.

There are exceptions to Section 75, such as taking cash out on a credit card, also known as a cash advance, and using the money to pay for an item. Also, if the item is faulty but still under warranty with the manufacturer, you’ll need to contact the manufacturer. 

What are my cancellation rights for financial services?

Most credit agreements, such as personal loans and credit cards, are covered by the Consumer Credit Act. These can be cancelled within 14 days after the agreement is made by telling the lender you wish to cancel. This also applies to all direct lenders, including short term loans.

You'll need to pay back any money borrowed up to that date, this may include any interest owed. If you have bought goods using the credit agreement, you’ll need to pay for them or return them to the supplier. You must keep the goods safe and in an acceptable state if returned to the seller.

For insurance services in the UK, you should be given a minimum 14-day cooling-off period and allowed to cancel for any reason. For life insurance, the cooling-off period is normally 30 days. During this time, you should receive any premiums you have paid; however, your insurer may take a small amount to cover the days the policy was in place and an administration fee.

In summary

It is hard to cover all scenarios and consumer legislation in one guide. Still, one takeaway point is faulty items and services are nearly always refundable within 30 days. If you are going to return an item because something is wrong, do so early. Also, be sure to check a retailer’s return policy - especially during sales events. 

Using a credit card to make a purchase has added protection. And, if you think you’re likely to change your mind, you may want to make the purchase online. If you need advice and help, you can use the Citizens Advice customer helpline services. 

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