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Credit Notes, Guarantees and Repairs

22.7.2002

Here are some questions we get from consumers who contact our advice centre. Do they sound familiar?

Can I demand a credit note?

There is no legal right for a customer to insist on a credit note and the customer does not have to accept a credit note if one is offered. If the customer accepts a credit note, they cannot later insist on having their money back.

A credit note does not have to be in any particular format, and might be given in the form of a voucher. It may also have conditions attached to it, read these carefully, one example is that the voucher must be used within a given time. If a customer is going to accept a credit note, check that the conditions, if any, are acceptable and that there are goods that you want to buy.

It might be useful to accept a credit note if there is no legal right to money back or compensation.

Can I demand a guarantee?

No, a guarantee is always given voluntarily. However, if there is a guarantee, the customer may have additional rights. For example, they may be able to get a repair or replacement whereas they would not be entitled under their normal legal rights.

When might a customer choose to claim under a guarantee?

The customer might want to claim under a guarantee where:-

  • the seller is refusing or is likely to refuse to give the customer a refund
  • Read a guarantee carefully to check whether the shop or manufacturer should sort out any problems
  • It is inconvenient to return goods to a shop and easier to return them by post to a manufacturer or distributor
  • It may be easier for the customer to get a repair or replacement under the guarantee
  • The seller has gone out of business
  • Sometimes if the goods were bought abroad, a UK manufacturer will accept liability
  • the guarantee offers a better deal than the customer's rights under the agreement

Must I accept repairs?

The customer may want a repair rather than a refund. However, if the goods or services are faulty, the customer can insist on a refund rather than a repair if the goods have been returned quickly.

If the customer and seller do agree on a repair, the customer can still reject the goods if the repair is not satisfactory. The customer will usually only be able to do this if the goods are fairly new.

Who pays for the repair If goods or services are faulty due to a manufacturing or design fault then a repair must be carried out free of charge by the seller. In some instances, the seller maybe able to claim part of the cost of the repair, depending on how old the goods are.

When the customer might accept a repair?

A customer might accept a repair where:-

  • the customer has no right to their money back or compensation. This might be due to the customer damaging the goods themselves
  • the seller does not accept that the customer has a right to money back and the customer is willing to accept a repair.
  • the seller refuses to give money back and the customer does not want to take the matter further and is happy to accept a repair
  • goods or services are faulty, and the fault is easily put right
  • the customer has had goods for a time and they have become faulty. Although the customer has a right to compensation, this is usually in the form of a free repair
  • if they are claiming under a guarantee that offers a repair and the customer prefers to claim under the guarantee, rather than their legal rights against the shop.
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