Online merchant cancelled order, refusing cash refund

[amazedmummy]

Hi, I'm hoping someone can help me out here.

I placed an order a few weeks ago in groupon for loo roll. I then heard no more. I contacted them yesterday morning to find out what was going on. They informed me that they had been unable to fulfil my order and had cancelled it. They offered me the option of replacing what I'd ordered so I had a look but the only option is much more expensive and lower quality so I declined. They are refusing to give me back the money as cash and have insisted that it has to be credit towards a future purchase. I however want to order from somewhere else and need the money back.

Where do I stand legally? If they cancelled the order because they are unable to fulfil it are they allowed to hold on to my money? I had a look at the distance selling regulations but I'm not sure what would apply as I never received the goods. Thanks.

No, they are not allowed to hold on to your money. They cannot insist that it has to be credit for a future purchase. This is basic contract law. They are not fulfilling their side of the contract so they must give you your money back. If they refuse you need to send them a letter stating how much they owe you, giving them a reasonable deadline for returning your money and stating that you will take legal action if they fail to comply. If they still refuse to refund your money you can then take action against them in the small claims court.

If the order was for more than £100 and you paid by credit card you can get a refund from them. However, as you were buying loo roll, you probably didn't pay that much.

Point them in the direction of the Consumer Contract Regulations 2013. Tell them they have 48 hours to initiate a refund to your original payment method or you will be reporting them to Trading Standards and taking further action. I would also contact Groupon. If you paid by credit card you can also claim via them.

Ps. Over £100 doesn't really matter anymore for credit card purchases. I claimed for £45 ish last year after a company I bought from went bust.

Just contact your bank and they will refund under visa/MasterCard regs

Over £100 doesn't really matter anymore for credit card purchases

Over £100 is the law. Credit card companies may give you a refund below that limit but they don't have to.

Thanks everyone, I've replied so I'll see what they say. I've also raised a dispute through PayPal. I used my debit card but through them.

@prh47bridge actually that's only section 75, not a chargeback, which is not law but given at the discretion of the card provider. Two totally different things.

@delilahbucket - Whilst I didn't go into the terminology, that is exactly what I said.

An update. They've said that "because of Coronavirus" banks are having issues processing payments and so they've removed the option of a cash refund for all customers.

I've escalated my dispute with PayPal info a claim. Once I've heard the outcome I can think about next steps. This is ridiculous.