What Happens If a Company Refuses to Give a Refund?
Consumers in England and Wales have strong legal rights to refunds. A company that refuses a valid refund claim is in breach of the Consumer Rights Act 2015.
Quick Answer
Under the Consumer Rights Act 2015, you have a 30-day 'short-term right to reject' faulty goods for a full refund. After that, you are entitled to a repair or replacement first, but can still reject if these fail. If a company refuses to honour your legal rights, you can escalate to an alternative dispute resolution scheme, your card provider, or ultimately the small claims court.
Full Explanation
The Consumer Rights Act 2015 (CRA) is the primary legislation protecting consumers when buying goods, digital content, and services. For goods purchased from a business, the CRA implies three key statutory rights: goods must be of satisfactory quality; fit for purpose; and as described. These rights apply regardless of what any terms and conditions say.
If goods fail to meet these standards, your rights depend on timing. Within the first 30 days of purchase (the 'short-term right to reject'), you can demand a full refund without giving the trader the opportunity to repair or replace the goods. The trader cannot insist on a credit note or exchange against your wishes. After 30 days, the trader has one chance to repair or replace; if that one attempt fails (or if repair/replacement is disproportionate), you can then 'final right to reject' — which gives you a refund reduced to reflect use of the goods.
For services that are substandard, you are entitled to have them re-performed or, if re-performance is impossible, to a price reduction or full refund. For digital content that fails to meet standards, the equivalent rights are repair, replacement, or refund.
If a retailer refuses your valid refund claim, the next steps are: escalate through the trader's complaints procedure; contact their sector's Alternative Dispute Resolution (ADR) scheme (many sectors have mandatory ADR — e.g., electrical retailers through The Retail Ombudsman); or bring a small claims court claim (the claim form can be filed online for amounts up to £10,000, and the process is designed for use without a solicitor).
Chargeback through your bank or credit card is another powerful remedy: if you paid by debit or credit card, you can ask your bank to reverse the transaction. Section 75 of the Consumer Credit Act 1974 makes your credit card provider jointly liable with the retailer for purchases between £100 and £30,000 — providing an additional route to recovery.
Legal Basis
- §Consumer Rights Act 2015, sections 9–19 (goods), 34–47 (digital content), 48–57 (services)
- §Consumer Credit Act 1974, section 75 (credit card joint liability)
- §Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013
What To Do
Assert Your Rights in Writing
Write to the retailer citing the Consumer Rights Act 2015 and the specific defect or failure. State clearly what remedy you are seeking (refund, repair, or replacement) and give a deadline of 14 days. Keep a copy of all correspondence.
Escalate to the Retailer's Complaints Team
If the initial complaint is ignored, escalate to the retailer's formal complaints department. Reference your previous correspondence. Ask for a final response, which is required before most ADR schemes will accept a complaint.
Use a Chargeback or Section 75 Claim
Contact your bank or credit card provider and request a chargeback (debit card) or raise a section 75 claim (credit card for purchases over £100). Provide evidence of the retailer's refusal. This can be very effective.
Refer to an ADR Scheme
Many sectors have approved ADR schemes (e.g., retail ombudsman, financial ombudsman, communications ombudsman). ADR is usually free, binding on the trader, and faster than court.
Issue a Small Claims Court Claim
If all else fails, issue a claim via Money Claims Online (moneyclaims.service.gov.uk). For amounts up to £10,000, the small claims track is informal, relatively cheap, and does not require legal representation. Many traders settle on receipt of a claim.
Important Deadlines
Important Warnings
A credit note or store credit is not the same as a cash refund — you are not required to accept it if you are entitled to a refund under your statutory rights.
The 30-day short-term right to reject applies from the date of delivery, not the date of purchase.
Returning goods beyond the 30-day period without a fault does not give you a legal right to a refund — you are relying on the retailer's own returns policy in those circumstances.