Online shopping can land you with unexpected debt

The shops have finally opened! For many, the thrill of browsing may be tempered by the loss of some much-loved high-street brands and the rules in place that might limit the shopping experience.

Of course, many will have got used to shopping online – so it might be a while before they’re tempted back to the high street.

Yet thousands of people are reporting problems with online shopping each week. Increasingly, it’s issues with returns, deliveries and credit that are causing consternation, rather than wonky goods or refunds.

One of the issues that worries me the most, is the increasing numbers of people who are being penalised or pursued for buy now, pay later (BNPL) debts incorrectly, as a direct result of errors retailers and credit companies. Here’s a look at the problem – and how to avoid getting into trouble.

Why you might end up paying for credit, despite following the rules

Resolver has helped people sort out more than 17,500 complaints about buy now, pay later credit in the last two years. Yet increasingly, because retailers aren’t logging returns on time or the credit firms fail to update their accounts, people are having debts or defaults registered against them.

One of the most popular forms of BNPL credit involves ‘try before you buy’ – where you try clothes to see if they fit, returning the ones that don’t before a deadline to avoid ‘buying’ them by default. As long as you return the items within a set timeframe – usually 14 to 30 days, depending on the retailer – you should not be billed.

Of course, that only works if the retailer or credit firm ‘stops the clock’ when it gets your parcel back. Assuming it doesn’t go missing with the courier.

Other complaints involve:

The credit firm registering a debt, despite the parcel being returned, with some people being passed on to debt collectors for relatively small amounts.

Others were charged late payment fees for items by credit firms or were locked out of others and passed to debt collectors. Some people were forced to pay for items in full or in instalments while waiting for complaints to be addressed.

This is particularly frustrating as both the Consumer Rights Act and Consumer Contract Regulations provide statutory rights when it comes to returning goods, without the need to take credit out.

The law says: You have 14 days to return (most) goods under the Consumer Contract Regulations, even if there’s nothing wrong with them, as long as you bought online. You have up to 30 days to return goods bought anywhere if they are broken, damaged or not as advertised.

So what can you do to avoid being hit with unfair debt?

The most frustrating thing about this situation is, it’s not your fault! You shouldn’t have to allow for businesses not doing things correctly, but there are things you can do.

If you’re going to return items, notify the business in writing. If there’s no email or live chat, give them a call and note down the date and time. In the worst case scenario send them a tweet.

If the shop still has a high street branch, ask if you can return the items there. Make sure you get confirmation you’ve handed over the goods though!

Make sure you check the postal return rules on the retailer’s website. I’d photograph the parcel sealed up, so you’ve got a record of the item before it goes in the post.

Again, get a receipt from wherever you drop off the item, be it a courier, post office or local shop.

Tell the credit firm too if you’ve taken out a credit deal. If you get billed, make a formal complaint asap and ask the firm to suspend any debt or interest while they investigate.

Hit with an unfair debt?