Solving Problems With a Business: Returns, Refunds, and Other Resolutions (2024)

Disappointed by a product or service? These strategies and this sample complaint letter can help you get your money back or reach another resolution.

  • Go Back to the Store or Website
  • Write a Letter
  • Get Outside Help
  • Post an Online Review
  • Consider Dispute Resolution Alternatives

Go Back to the Store or Website

Before you go back to the store or website, learn about the company’s return policies and collect documents related to your purchase.

  • Look for return policies, deadlines, customer service numbers and other important information on receipts, product packaging, warranties, or the seller’s website.
  • Check deadlines. Many stores will not take returns or exchanges after a certain time, like 30 or 90 days. Promptly return your undamaged item to have the best chance of a refund, exchange, or store credit. You might have to contact the manufacturer to return a defective or damaged product after a seller’s return deadline.
  • Collect key documents. Gather your receipts, warranties, canceled checks, credit card statements, invoices, contracts, or other documents. Make copies of documents to give the business and keep the originals. If you go to a store, bring any tags and original packaging you have.

Tell the business what happened. Give details about the problem, and about the resolution you want.

  • Explain the problem. Is the product defective or damaged? Did you get poor service or repairs that didn’t fix the problem? Reputable businesses want to know about their customers’ problems so they can act and avoid future complaints.
  • Be clear about what you want. Say if you want a full refund, an exchange, a store credit, a markdown on the item you bought, or a percentage discount on a future purchase. Explain why you want that result. Sellers are often more willing to offer a store credit than a refund. It’s less expensive for them and keeps you as a customer.
  • Ask to speak with a manager. If a customer representative doesn’t offer the result you want, be calm, polite, and persistent. Ask for a manager or supervisor. A manager will likely have more flexibility and authority to resolve the issue. Explain the problem to each person you talk with and describe what you want them to do.
  • Keep notes about what you did to solve the problem. List the people you talked to, the date of your conversation, and what they promised to do. If you chat online or send forms to customer service, save a copy of what you wrote, or take a picture of the screen before you exit, and note the date.

Write a Letter

If you can’t resolve the problem by going back to the store or website, use this sample letter to write an effective complaint. When you write

  • Give your name, mailing address, and email address. Include your phone number too, if you want the business to contact you that way. Include your account number if you have an account with the business, and the related order or transaction number.

  • Give the basics. Describe the product or service you bought and important details of the transaction. Give the product’s name, its serial or model number, and the date and place you bought it or had it repaired or serviced.

  • Explain the problem. For example, say the product doesn’t work, you were billed incorrectly, something wasn’t disclosed clearly, or a product’s features were misrepresented.

  • Tell the business what you want. For example, say you want a refund, repair, exchange, or store credit.

  • Include copies of relevant documents , like receipts, repair orders, and warranties. Keep the originals.

  • Describe your next steps. Say how long you’ll wait for the business to answer. Give time for the business to act, and let it know you’ll report the matter to your state attorney general or state consumer protection office if you don’t hear by your deadline.

  • Make a copy of your letter to keep. Send your letter by certified mail and ask for a return receipt. If you send your complaint letter online, print the screen that shows your letter or take a screenshot of your letter before you click “submit.”

Get Outside Help

If you’re not satisfied with a business’s response to your complaint

  • Contact your state attorney general or state consumer protection office. These government agencies might mediate complaints, conduct investigations, and take other action against those who break consumer protection laws.

  • Contact a national consumer organization. Groups like Call for Action and Consumer Action try to help people with complaints.

  • Contact your local Better Business Bureau The Better Business Bureau is made up of organizations supported by local businesses. Local Better Business Bureaus try to resolve customer complaints.

  • File a report with the FTC. The FTC doesn’t resolve individual complaints, but your report helps law enforcement detect patterns and might lead to an investigation. Tell your story at ReportFraud.ftc.gov.

  • Visit USA.gov/complaintsto get information about filing complaints about specific types of products, steps to filing a complaint with a seller or manufacturer, links to product recall information, and more.

Post an Online Review

If you can’t resolve the problem and feel the business has been unfair, write an online review. The Consumer Review Fairness Act protects your ability to share your honest opinions about a business’s products, services, or conduct, in any forum, including social media.

It’s illegal for companies to threaten or penalize you for posting honest reviews. Many companies check social media and might reply if they see you’re dissatisfied with their response to your complaint.

Consider Dispute Resolution Alternatives

Many consumers and businesses use dispute resolution programs instead of going to court.

  • In mediation , a neutral third party helps you and the other party try to resolve the problem. However, it's up to you and the other party to reach an agreement.
  • In arbitration you and the other party might appear at hearings, present evidence, or question each other’s witnesses, although the setting is less formal than court. An arbitrator or panel makes a decision or award after you present your case. The decision might be legally binding.

Many dispute resolution programs are voluntary, so you decide whether to use them. But in some states, a court might order you to try mediation or arbitration. Some companies require you to use arbitration for disputes and give up your right to go to court. Check your contract or product packaging to see what a business requires.

Your state consumer protection office or bar association might be able to suggest alternative dispute resolution programs in your area.

Small claims courts can resolve many financial disputes. The dollar limits on claims vary by state, but some states set the limit as high as $25,000. The costs of using small claims courts is relatively low, the procedures are simple, and you usually don’t need a lawyer. Check with your local small claims court for information about how to file your lawsuit.

If all else fails, consider a lawsuit. You’ll be able to sue for damages or any other type of relief the court awards, including legal fees. A lawyer can advise you about your options.

Solving Problems With a Business: Returns, Refunds, and Other Resolutions (2024)

FAQs

How do I get a refund from a company that won't respond? ›

These strategies and this sample complaint letter can help you get your money back or reach another resolution.
  1. Go Back to the Store or Website.
  2. Write a Letter.
  3. Get Outside Help.
  4. Post an Online Review.
  5. Consider Dispute Resolution Alternatives.

How to handle returns and refunds? ›

Ready for Returns? Best Practices for Handling Customer Refunds
  1. Update your return and refund policy. ...
  2. Respond quickly to customer refund requests. ...
  3. Offer an online customer portal for refunds. ...
  4. Prevent fraud. ...
  5. Reduce your total rate of returns.
Mar 29, 2022

How would you establish the reason for giving a customer a refund? ›

To find out a customer's return reasons, ask them to explain why they want to return an order by answering a few follow-up questions and including photos, if applicable. This can either be through an online return portal, or on a paper form that the customer sends back with the returned order.

How do refunds affect a business? ›

Not only does a return result in lost revenue, but it also multiplies a retailer's carbon footprint, leaving our planet to absorb the costs. Returns can also have a negative impact on customer loyalty and customer lifetime value.

What to do when a company won't give you a refund? ›

Company Won't Give You a Refund? Here's How to Get Your Money Back
  1. Try to Work it Out with the Merchant First.
  2. Option 1: Request a Chargeback.
  3. Option 2: Consider Mediation.
  4. Option 3: Sue in Small Claims.
  5. Option 4: Pursue Consumer Arbitration.
  6. FairShake Can Help Make Arbitrating a Breeze.

Can you force a company to give you a refund? ›

There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, customers may seek action for cases under the Unfair Trade Practices and Consumer Protection Law. There's no right to cancel contracts or purchase agreements.

How do you convince customers if refund is not possible? ›

Acknowledge their request, show some empathy, provide a concise explanation on why you cannot issue a refund (whether it's old warranties, missing the refund deadline, the condition of the returned product, etc.), and offer an alternative solution, if possible.

How do I fight for a refund? ›

When you are unhappy with goods or services, you should protest and ask for a refund. Find the receipt and explain to the merchant why you are unhappy with their goods or services. If necessary, work your way up the chain of command, starting with a clerk and then asking to speak to a supervisor.

What is the company procedure for dealing with refunds? ›

Striking a Balance When Handling Refunds
  • Clear refund policy communication. ...
  • Flexibility within refund policy parameters. ...
  • Prompt and transparent communication. ...
  • Offer alternatives. ...
  • Employee training. ...
  • Establish a clear refund policy. ...
  • Communicate clearly. ...
  • Empathize with the customer.
Feb 8, 2024

Is it illegal to not refund a customer? ›

Most retail stores allow you to return things you buy within a reasonable time for a full refund, credit, or an exchange. When a store clearly displays a limited or no-refund policy, however, refunds and exchanges are not required by law.

How do I persuade a refund? ›

Example of what to say or write

Tell them how much you want refunded to you and explain how you worked out the amount - for example how serious their actions were and the impact it had on you. Keep a copy of any letter you send or make a note of the conversation and who you talked to.

What to do if a customer is demanding a refund? ›

To help you handle refund requests, we'll share a few steps you can take.
  1. What Should You Do When a Customer Requests a Refund? ...
  2. Step 1: Handle Refund Requests Promptly. ...
  3. Step 2: Investigate the Facts Thoroughly. ...
  4. Step 3: Consult Your Refund Policy. ...
  5. Step 4: Look for a Non-Refund Remedy. ...
  6. Step 5: Make a Reasonable Decision.
Feb 19, 2024

Can a business reverse a refund? ›

Answer: Once a refund has been made, it is permanent.

How should refunds be accounted for? ›

Refunds impact both the income statement and the balance sheet. They reduce the revenue line item on the income statement and create a liability on the balance sheet, reflecting the business's obligation to return money to customers.

What to do if a company doesn't reply? ›

Complain to the organisation

If it has been over one month since you made your request and you've not heard from the organisation, you should send them a follow up email or letter. If you've already received a response to your SAR, but are unhappy for any reason, you should first complain to the organisation.

How to demand a refund? ›

How to Demand a Refund
  1. Step 1: Check the Refund Policy.
  2. Step 2: Locate Your Purchase Receipt.
  3. Step 3: Provide Reason for Refund.
  4. Step 4: Outline the Payment Details.
  5. Step 5: Finalize the Demand or Consider Further Action.

How to complain and get money back? ›

When you are unhappy with goods or services, you should protest and ask for a refund. Find the receipt and explain to the merchant why you are unhappy with their goods or services. If necessary, work your way up the chain of command, starting with a clerk and then asking to speak to a supervisor.

Is it legal for a company to say no refunds? ›

Yes, it is legal to offer a no return policy. There are no laws that prohibit no return policies, but there are laws that require businesses to clearly display their no return policy if they have one.

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