Consumer rights question - returning item bought with credit not

[RainyAfternoon]

Sorry - this is extremely trivial compared to other queries on this board, but I'm irritated by this and think it can't possibly be right. Can anyone help me out here?

I had a credit note from an online maternity clothes store for £75 (from a faulty bag that was returned). I decided to buy 3 items with this, costing £42, £25 and £39 - £106 together. I paid the extra £31 by paypal.

This morning I had a message saying that the last item for £39 was out of stock for the foreseeable future and I was given a refund of £11.41 to paypal and a credit note for £27.59.

I phoned to discuss this as it didn't make much sense to me. It appears they applied the £75 credit proportionally across the 3 items, and they refunded in the same way they had applied the credit. They were adamant that this was the way they should apply my refund.

I am cross about this, because if I had known the item was out of stock, I wouldn't necessarily have spent the last £8 of my credit note as there wasn't really much I liked on their website. Or I might have chosen something small like a pair of tights. I also only made the commitment to buy £106 of goods because of misleading stock info on their website - I don't think I should be held to buying anything over the cost of the two items that are in stock.

I want to know why credit notes are not treated like cash in terms of refunds. Why have they kept nearly £20 of my paypal payment when I am now sitting with a £27 credit note?

Irritatingly, the item that was out of stock is very similar to one in a different shop which I would now like to buy, but obviously don't want to spend yet more cash as the store are hanging on to my credit.

Does anyone know if it is okay for them to do this? Thank you

(nb: I'm not a legal expert). It sounds like the company is not complying with the law. Usually a faulty item is grounds for a refund (although there are some exceptions, e.g. if you've had the goods for a while). The waters are somewhat muddied, however, if you accept a credit note when you were entitled to a refund.

As to the crediting of the £39 item - they can't hold onto your money if the unsupplied item is not available for the foreseeable future. Under the Distance Selling Act you can return goods within 7 days of receipt and ask for a refund, so if you've not received the other two items yet, or are still within the 7 day period, you could try returning the items and asking for a full refund.

The law aside, the company's calculation and apportioning of credit are completely lacking in logic. If they argue that you accepted a credit note for the first item, and you keep the two substitute items, then worst case scenario should be that you are left with £8 credit and the remainder refunded.

Some links that might be of use:

www.gov.uk/accepting-returns-and-giving-refunds

www.adviceguide.org.uk/wales/consumer_w/faq_index_consumer_affairs/faq_consumer_affairs_credit_notes_and_returned_goods.htm

www.which.co.uk/consumer-rights/action/letter-to-complain-about-undelivered-goods

Hi fascile thanks for your response. I'm glad you also think they're being illogical. (Pregnancy brain not helping me!) I will try again now I've been emboldened by your answer!