SOGA question: paying with discount vouchers

growse · 2 Mar 2011 at 13:43

I'm looking for some advice on how the Sale of Goods Act applies to purchasing goods with discount vouchers.

Basically, the other half gets an employee benefit with her work, where she gets a certain percentage off goods at certain shops (e.g. 10% off at well-known-electrical-retailer). The way this works is that she would find something she wants to buy, lets say at £1000. She then phones the company running the scheme and buys £900 worth of vouchers which allow her to spend £1000 at well-known-electrical-retailer. She then gets sent an SMS code which she presents at the till, till-person puts the number in and it's good for £1000-worth of goods.

We're in a situation where we bought a fridge from a particular well-known-electrical-retailer and paid for it with this method. However, upon delivery, we've found that the fridge is damaged (massive dent in the door). The retailer have said that we can either have a replacement, but they don't know if they'll ever get any more stock, or a refund in SMS vouchers.

Obviously, £1000 worth of vouchers for this particular retailer is useless to me if they're never going to stock the model I want again. The voucher company are maintaining that they can't ever turn vouchers back into cash once the transaction has gone through.

Where do I stand in terms of getting a refund? The SOGA surely states that I'm entitled to a full refund if I make a purchase of goods which turn out to be faulty or damaged, but no-one actually seems to want to give me any cash. I get the feeling that someone is bending the law here, but don't know who to shout at.

Thanks all.

j0s · 2 Mar 2011 at 13:53

not exchange for a like for like model?

From reading it would seem to me the scheme that you purchased the vouchers, would be liable to give cash back, not the retail outlet, which have offered a refund by voucher.

stoofa · 2 Mar 2011 at 14:06

I would agree with the post above.
If I made payment in vouchers then I would expect any refund to be in vouchers.
With the Distance Selling Regulations there would be nothing to stop you getting "cash" from the scheme by simply making purchases in vouchers, returning under DSR and getting the cash.

I'd say refund from retailer in voucher form.
Ability to turn those vouchers "back to cash" would lie with the scheme that processed the vouchers.

Rroff · 2 Mar 2011 at 14:13

As above depends whether the voucher scheme is willing to turn vouchers back into cash - I suspect the contract has some small print that tries to make it difficult for you to do that.

Its not the fault of the voucher company that the retailer can't give you what you want and its not upto the retailer if you paid with cash or vouchers so I don't see it as either of them bending the rules.

growse · 2 Mar 2011 at 14:22

Thanks for the responses.

My belief is that the voucher company need to have a provision to allow for refunds, as they're ultimately just selling me a £1000 voucher for £900. The retailer's obligation is only to refund through the method that they were paid, so I'll take this up further with the voucher company. Might give consumer direct a quick call as well.