It happens to all of us. We buy something and take it home only to discover something faulty with it, or that the item doesn’t do what it is supposed to do. In such cases, we typically have the right to return it and ask for a refund.
However, a new survey reveals that a large number of Brits do not actually return goods or claim refunds that they may be entitled to, potentially costing them thousands of pounds each year. Here is the lowdown.
How much do Brits lose by not returning items or asking for refunds?
According to new research conducted by Trainline, the average Brit loses more than £1,200 every year by not returning goods or failing to claim a refund they are entitled to.
The research, which involved 2,000 participants, found that the average person misses out on a product or service at least once a week.
However, over 60% of people don’t like asking for a refund from providers of products and services that they have bought. In fact, 37% actively avoid asking for a refund.
Rail and coach ticket booking platform Trainline commissioned this research to launch its new ‘Delay Repay’ feature that is designed to prevent travellers from missing out on compensation for delays of more than 15 minutes.
A previous study showed that Brits missed out on £35 million of Delay Repay compensation in the past year. A staggering 42% of those entitled to refunds didn’t apply because they were unclear on how to do it and 15% didn’t bother to apply simply because they found the application process too complicated.
Why don’t people like asking for a refund?
According to the survey by Trainline, more than one in four people (27%) said that they don’t like returning items or asking for refunds because they hate confrontation.
About one in five (18%) said they don’t do it because the staff had been nice to them.
What are your rights as a consumer when it comes to returns and refunds?
As a consumer, you have fundamental rights that allow you to return and possibly get refunds for items that:
- Are faulty
- Do not match the original description
- Do not perform as expected
These rights are covered by two major pieces of legislation:
In a situation where you are unsure of your rights on product returns or refunds, a quick look at these laws can help clear things up.
However, one thing to keep in mind is that returning unwanted items is usually not an automatic right. Rather, it will depend on the return policy of a specific retailer.
Some retailers may refuse to cooperate when you return an item or request a refund. If that happens, you have the option of filing a complaint with the company’s management. If there’s still no resolution, you can contact the Consumer Ombudsman, who will attempt to resolve the matter on your behalf.
Finally, using a credit card when making purchases can provide an extra layer of protection. That’s because under Section 75 of the Consumer Credit Act of 1974, a credit card provider is equally liable if something goes wrong with a purchase you have made, and you can claim a refund from them.
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About the author
Sean is a personal finance writer with a strong passion for helping others become more financially literate and make better financial decisions. He covers everything from credit cards to savings to investing.
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