Can I sue someone for not giving me a refund?

Asked by: Mrs. Clarabelle Jones  |  Last update: February 2, 2026
Score: 4.6/5 (56 votes)

Yes, you can generally sue a business for not giving you a refund, provided you have a valid legal reason for the refund in the first place.

Can you sue someone for not giving a refund?

Many unethical and greedy companies, businesses and corporations are withholding your money. You don't have to accept a refund denial. Consumers have legal rights, if you have been denied a refund it may take a lawsuit to get what you deserve.

What can I do if a company won't give me a refund?

If a company won't refund you, first formally contact them again, then dispute the charge with your bank/card issuer, and if needed, escalate by filing complaints with the Better Business Bureau (BBB), your State Attorney General, and the FTC, or consider small claims court for larger amounts. 

Is it illegal to not give someone a refund?

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.

What can I do if someone won't give me my money back?

When someone owes you money and refuses to pay, start by sending a formal Demand Letter, then consider Mediation, and if needed, file a lawsuit in Small Claims Court, which is faster for smaller amounts, potentially leading to wage garnishment or bank levies after you win a judgment. Always gather your proof first, like texts, emails, or signed agreements, to show the debt's legitimacy. 

How to Get Your Money Back from Someone Who Owes You

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Is it worth suing someone for $500?

Suing for $500 can be "worth it" in small claims court, which is designed for smaller disputes and usually doesn't require a lawyer, but you must weigh filing/service fees (can be $20-$200+) and the opportunity cost of your time (prep, court) against the potential recovery; if your costs approach $500, it's often not financially sensible, but it might be worth it for principle or if the other party pays easily, says. 

Do companies legally have to give you a refund?

Generally speaking, when you buy goods you enter into a legally binding contract and you have no right to return them for a refund. However, there are circumstances where a right to return goods may arise.

Is denying a refund illegal?

It's generally not illegal for a US business to refuse a refund if they clearly state their "no refund" policy before purchase, but it can be illegal if the product is faulty/defective or if the store fails to conspicuously display its policy, as many states have laws requiring this disclosure or mandating refunds for defective goods, overriding store policies. Federal law doesn't set broad return rules, but consumer protection varies by state, with some (like California, Florida, New York) requiring refunds if policies aren't posted. 

What is refund abuse?

Refund abuse (or returns abuse) is when a customer exploits a merchant's goodwill or policies to get a refund for a product or service they didn't genuinely have a valid reason to return, essentially getting the item for free or receiving undue compensation, often through false claims like "item not received," wearing an item once and returning it, or keeping the item while claiming it never arrived. This behavior costs businesses significantly and can involve tactics like claiming damaged goods, using fake receipts, or disputing charges after a refund denial. 

Do I legally have to give a refund?

Many retailers offer exchanges or refunds once you have a receipt and they are returned within a certain amount of time and in a saleable condition with all the original labels, tags and packaging. However, this is shop policy and represents a gesture of goodwill – it is not a legal requirement.

Can you force a company to give you a refund?

In the U.S., there's no federal law that says merchants have to accept returns. However, retailers are required to provide a repair, exchange, or refund if a product is defective. And under the FTC's “cooling off” rule, you have the right to cancel some sales within three days of the purchase and get a full refund.

Is it illegal to not refund a customer?

You must offer a full refund if an item is faulty, not as described or does not do what it's supposed to. In some cases you must offer a refund if the customer changes their mind.

Who do I complain to about not receiving a refund?

There are a number of different ombudsman services you can use depending on your issue. You can escalate your complaint to an ombudsman providing you have given the company a reasonable amount of time - usually up to eight weeks - to resolve your problem.

What to do if someone doesn't give you a refund?

If you can't get the support you need from the retailer in the form of a refund, repair or replacement, you can file a complaint with the company. If that still doesn't help, you can contact the Consumer Ombudsman.

Is it illegal to not give someone their stuff back?

Yes, it can be illegal (theft or conversion) to not give someone their property back, especially if you intended to keep it, but police often treat it as a civil matter unless criminal intent (like theft) can be proven; you can sue in small claims court or civil court to get your property back. The key is proving the person dishonestly intended to permanently deprive you of the item, not just forgetting to return it. 

Can you legally make someone pay you back?

Yes, you can sue someone who owes you money if you have clear proof of the debt and the amount falls within your state's small claims court limits. You'll need to file a complaint, serve the defendant, and present evidence in court.

What are the laws around refunds?

A refund should be the full amount the consumer paid for the product. The business must not deduct an amount from a refund to take into account the use a consumer has had of the product.

How do I fight for a refund?

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.

Is refund abuse illegal?

Yes, refund abuse is a crime, often falling under fraud or theft, and can lead to serious legal consequences like fines, jail time, and federal charges if it involves deceit for financial gain, such as returning used items (wardrobing), faking receipts, or manipulating return policies. While violating a policy alone might just get you banned, actively defrauding a retailer is illegal and can escalate to charges like wire fraud or money laundering. 

Is it illegal to deny refunds?

It's generally not illegal for a US business to refuse a refund if they clearly state their "no refund" policy before purchase, but it can be illegal if the product is faulty/defective or if the store fails to conspicuously display its policy, as many states have laws requiring this disclosure or mandating refunds for defective goods, overriding store policies. Federal law doesn't set broad return rules, but consumer protection varies by state, with some (like California, Florida, New York) requiring refunds if policies aren't posted. 

Can I sue if I don't get a refund?

In conclusion, it is possible to sue a company for not refunding your money if they have breached their contract or violated consumer protection laws. Seeking legal advice and understanding your rights as a consumer is crucial in determining the best course of action in such situations.

How long do I have to claim a refund?

Generally, you must file a claim for a credit or refund within three years from the date you filed your original tax return or two years from the date you paid the tax, whichever is later.

What is the maximum time for refund processing?

Typically, the refund process takes around 20-45 days after the e-verification of the income tax return. However, if the acknowledgement has been sent physically to the CPC, it may take longer. Demand determined: This means additional tax is payable.

What is Section 42 of the Consumer Rights Act?

Section 42: Consumer's rights to enforce terms about digital content. 204. If the digital content is not of satisfactory quality, fit for purpose, or does not match the description, the digital content will not conform to the contract.

What is Section 23 of the Consumer Rights Act?

23Right to repair or replacement

(1)This section applies if the consumer has the right to repair or replacement (see section 19(3) and (4)). (b)bear any necessary costs incurred in doing so (including in particular the cost of any labour, materials or postage).