Shops refuse to give cash refunds

SOME service providers have found a loophole in the National Consumer Protection Act: instead of giving consumers a refund they issue vouchers that can be cashed after three years.

Sowetan discovered this while investigating why two shops, Pearl and Diamonds Design and Rosetta, would not give their clients a refund.

Pearl and Diamonds Design, which claims to have been in business for 20 years, does not refund cash to clients, but insists on returned goods being exchanged for goods to an equivalent amount.

Though section 63 of the Act allows for service providers to issue credit notes or vouchers, service providers are bound to issue a cash refund - but only after three years.

Herman Warren, an aggrieved consumer, wanted to surprise his wife on her birthday in August. After discovering there was no return policy at Pearl and Diamond Design, as required by the National Consumer Protection Act, he notified a salesperson that he might return the gift since he was not sure his wife would like it.

Relying on the salesperson's assurance that he could return the necklace if his wife was unhappy, he bought it.

His wife did not like it and when he tried to return it a day later he was told the salesperson only worked on weekends.

"I was still assured I would be refunded as all my details and communication with their saleslady were captured in their system," he said.

His wife could only return the necklace three days later, and settled on a lower priced necklace for R2470.

"The dealer refused to honour her request for a refund for the difference and insisted on giving her a credit note," Warren said.

Warren said they were told the store would honour a refund if it was not more than R200. The Warrens got no refund though their invoice said nothing about the store's return policies or right to issue credit notes.

Warren said the Consumer Protection Act required that the terms and conditions of any sale be clearly communicated or stated.

Since he explicitly indicated to the salesperson he might return the necklace, it became incumbent on the salesperson to indicate the store would only issue credit notes for returned goods, he said.

Debbie Wills is also an aggrieved consumer. She went to Rosetta's shop at Eastgate to buy one of their exclusive outfits.

The store did not have her size, but offered to alter the one she tried on, she said. After some thought, she realised the outfit would need too many alterations for such an expensive item.

She was allowed to cancel her contract but was denied a refund.

Will said the owner would only give her a credit note.

"Nowhere in the Consumer Protection Act does it say a consumer should be given a voucher or a credit note. If that were allowed we would be forced to do business with service providers we no longer want to do business with," a visibly upset Wills said.

She said the store's salesperson who helped her also said nothing about their return policies.

"Nor was there any notice on their walls," she said.

Andre van Zly of Pearls and Diamonds said a refund was not an entitlement. Van Zly vouched for the assistant who had served Warren, adding that the store's return policy was communicated to Warren.

The owners of Rosetta had not responded at the time of publication.