The rights and wrongs when it comes to getting a refund
WITH 2021 on the horizon, I’ve been looking at the big issues that frustrated people this year.
By far the most common complaint involves getting refunds for services you can’t use, so I’ve teamed up with my top TV legal expert mate, solicitor Gary Rycroft, for a guide to the law and refunds.
What are your rights when cancelling an annual subscription?
WE get most of our shopping rights – online or on the high street – from the Consumer Contract Regulations and the much more wide-ranging Consumer Rights Act.
They’re full of wonderful and useful nuggets too, such as; since June
2014 all new subscriptions have to be ‘actively’ signed up to. This means you have to choose to sign up and the contract needs to be fair and clear, they can’t opt you into a contract.
If you have taken out a new subscription online then you also have the right to cancel an order 14 days after placing it.
What if goods or services aren’t provided due to lockdown?
IF you have signed up for goods and services which you couldn’t use due to lockdown the law could well be on your side if you want a refund.
There’s a legal principle known as ‘frustration of contract’ which forms the main basis for seeking a full refund.
In short, this applies where goods or services cannot be delivered for reasons not anticipated when the contract was agreed. This applies to both a single event – like hiring a venue for a wedding – or ongoing contracts like a gym membership.
So, for example, if you paid £300 for gym membership for a year (£25 a month) and the gym is closed for two months, you could be able to claim a £50 refund under ‘frustration of contract’. This also means you could pause or stop a regular subscription even if you are still within an initial agreed tie-in period, though you would have to start up again once the goods and services were available to use.
What if the business makes deductions for costs?
A BUSINESS may be entitled to ask for a contribution to its costs for things like maintenance or administration, but only if the initial contract says this is permitted, so check the T&C’s you were given when you signed up.
What if the business says it doesn’t have to refund me? THERE’S a huge amount of misunderstanding about laws and regulations – Gary and I are constantly fielding questions about firms changing T&Cs, ignoring rules or quoting non-existent or wrongly interpreted legislation.
Many businesses are battling to keep going, so some will try to stall refunds where possible – especially if they’re going to go under if they refund everyone. You’ll make more progress if you have a think about what you might be willing to compromise on – but get the firm to put its response in writing if it says no.
Remember, this isn’t you not wanting the goods or services anymore, it’s about not being able to have/use them.
What do the regulators say?
THE Competition and Markets Authority (CMA) has published guidance on its website covering when it expects businesses to refund you. This guidance does not have the same clout as a legal judgment in a court of law, but it would be foolish for a business to go against the spirit and intention of it. The CMA has started issuing fines and threats of legal action to the firms it has had most complaints about – so watch the news!
IF you’re having a problem getting a refund for an annual contract or subscription, Resolver can help. resolver.co.uk