Bluffton, SC asked in Consumer Law and Contracts for South Carolina

Q: Does a company have to honor a refund after sending confirmation?

I recently received a phone confirmation from a company stating that my refund would be processed and would appear on my credit card within 3-5 days. Approximately 3 hours after the call, I received an email from the company detailing the refund amount and the last four digits of my credit card. The email does not specify the timeline for the refund. Initially, the company declined to issue the refund, but I've since lost trust in them. Do they have to honor the refund based on the communication I've received?

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1 Lawyer Answer
Patrick A. Twisdale
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Answered

A: Whether the company must honor the refund may depend on whether a binding contract was formed, which typically requires offer, acceptance, and consideration. If the refund was simply a voluntary promise without any action or agreement from you in exchange, there may be no enforceable contract due to a lack of consideration. However, if you gave up something of value, such as agreeing not to dispute the charge or taking other requested action, that could support enforceability. Additionally, some industries have specific refund rules that may apply regardless of contract principles. Finally, the refund amount may also impact practical options for recovery, such as whether small claims court, chargeback procedures, or regulatory complaints are worthwhile avenues to pursue.

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