TO REFUND OR NOT? via Isioma Official

One morning I took my clothes to the drycleaner’s. We agreed they would be cleaned that same day while I pick up the next day. I paid the service fee in full and was issued a receipt with the words ‘no refund of money after payment’ conspicuously written on it. Next day I went to pick up only to discover the clothes had not even been cleaned. I requested to take the clothes away and demanded a refund of the money I paid since they had not performed their part of the agreement. The manager, in refusing my request, reminded me of the no refund clause contained in the payment receipt earlier issued to me. After much back and forth between us I finally recovered the money in full.

Does this sound familiar? We see such clauses in shopping premises, purchase receipts, carriage tickets, etc. Contrary to popular belief, a mere inclusion of such clause in business transactions is not enough to make it enforceable. In Nigeria, policies of service providers or terms and conditions included in commercial transactions must conform with the provisions of the Federal Competition and Consumer Protection Act 2018, otherwise they are invalid and of no effect. Various jurisdictions all over the world also have laws that regulate similar situations. Also, a defaulting service provider is not entitled to retain monies paid by a customer, and where the service provider is not in default, what he is entitled to if an order, booking or reservation is cancelled is a reasonable charge, subject to some conditions, and not the entire sum paid by the customer.

Are you a business owner? Do not include just any terms or conditions you fancy in your commercial transactions or when drafting company policy. That you have designated a certain condition or rule as ‘policy’ or as ‘binding’ does not make it legal or binding or enforceable. Acquaint yourself with the necessary laws or engage a lawyer to provide suitable policies for your business. Need some guidance in drawing up your company policy? I am just a click away.

What experience do you have about refunds? Would you agree to refund money paid to you by a customer?

One early morning I took my clothes to the drycleaner’s. We agreed they would be cleaned that same day while I pick up the next day. I paid the service fee in full and was issued a receipt with the words ‘no refund of money after payment’ conspicuously written on it

TO REFUND OR NOT? — IsiomaOfficial