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Examples :: Business Letters :: Letter stating decision for payment of refund

Letter stating decision for payment of refund (retail)

By law, refunds are payable to consumers if goods are defective at time of purchase, and / or not fit for the purpose for which they were bought.

Some businesses have a voluntary No Questions Asked refund policy, usually time based, in which customers can return goods for any reason.

Customers may request written decisions regarding refunds for legal or statutory purposes. If you decline to pay the refund, the letter is information for a possible legal claim.

Payment of refunds should be done with reference to the relevant consumer and commercial laws. If any further dispute arises, your position has been stated, as per the example below:



Your reference
Our reference


Request for refund Toaster Model XG2343

I'm pleased to inform you that your request for a refund for the above merchandise has been approved.

The toaster was found to be defective.

Under to the provisions of the Trade Practices Act regarding sale of goods, a refund is payable for merchandise purchased in a defective condition.

A cheque for the purchase price is enclosed.

We regret any inconvenience you may have incurred as a result of your purchase.

Yours sincerely



Please note:

  • This text is intended for advisory and guideline purposes only.
  • Any business letter can become a legal document, so check your content properly before issuing.
  • Any executable or statutorily defined document should be checked for compliance with legal requirements, and you should seek legal advice regarding its contents.