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Published: September 17, 2018
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Cash on delivery is a postal service that actually consists of the possibility of using mail as an intermediary, providing support for a purchase and sale transaction carried out remotely.
- Cash on delivery: concept, possibility of refusal, associated risks Possible risks
- Refusal of parcel before opening
This service is most widely used within the framework of targeted activities of online and television stores, as well as other organizations of a similar profile. At the same time, delivery of goods by mail with cash on delivery, in addition to the obvious convenience, also has a number of significant disadvantages associated with possible risks for both the recipient and the sender.
Possible reasons for parcel refusal at the post office
In order to cancel receipt of a shipment, no special reasons are needed, but you should still figure out when such a need arises. Thus, a number of reasons are identified that lead the client to refuse to receive the incoming parcel:
- the product took too long and became irrelevant;
- the box contains the wrong product that was planned to be ordered, or its condition does not suit the customer;
- the buyer is not physically able to visit the branch on time to pick up the goods;
- There is no money to receive the box, because you need to pay the full cost that the sender imposed upon registration.
The parcel can be returned at any time until the customer has paid for it, and this possibility remains even if there is an item inside that cannot be returned by law.
First of all, this is possible because the postal service does not involve the disposal of goods, and the company is not responsible for what is inside. In addition, until the buyer receives the shipment and pays for it, the purchase and sale transaction remains incomplete. In the second case, the seller remains the owner of the contents, and he cannot make any claims to the person who did not pick up the goods. However, such an opportunity exists in terms of delivery, because the sender paid for it, and as a result of the refusal, he suffered material damage.
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Cash on delivery: concept, possibility of refusal, associated risks
Directly by the term “cash on delivery” is meant the amount of money payable by the addressee at the time of receipt of the parcel at the post office. In this case, this amount consists of the price of the product being sold, the cost of its delivery, storage, as well as the subsequent transfer of funds received from the buyer to the seller.
The procedure for purchasing goods delivered by post with cash on delivery consists of the following steps:
- The buyer places an order for any product , delivered with cash on delivery, online, by phone or by other remote means. The goods are sent to the buyer by mail to the address specified by him at the time of placing the order.
- Upon delivery of the ordered goods to the post office, post office employees send the buyer a corresponding notice against signature..
- At the post office, the buyer pays the required cash on delivery amount, thereby purchasing the delivered goods.
- The funds deposited by the buyer are sent to the sender of the parcel via postal or telegraphic transfer.
According to paragraph 4 of Art. 26.1 of the Law of the Russian Federation No. 2300-1 “On the Protection of Consumer Rights”, the buyer has the right to refuse to receive a parcel (including sent by the method in question) at any time before its transfer, i.e. until payment is made at the post office.
However, in accordance with paragraph 4 of Art. 497 of the Civil Code of the Russian Federation, the buyer’s refusal to fulfill his obligations under a retail purchase and sale agreement concluded remotely is possible subject to reimbursement to the seller of all expenses incurred by him related to the transportation of goods, but only if this is provided for by the terms of the agreement or regulations legislation.
Possible risks
Since the buyer is often not charged an advance payment, most of the risks in transactions involving payment by cash on delivery fall on the selling organization.
Among the main risks for the seller in this case are:
- No guarantees from the buyer . In the event that the recipient does not show up at the post office to pick up a product ordered remotely, all costs for its storage and return transportation are borne by the seller.
- Long term for the transaction . The time it takes for the seller to receive funds for sold goods directly depends on the time the order is transported to the recipient and the time it takes for the money transfer to be made by postal employees. Thus, the turnover of funds of the selling organization slows down significantly.
- Dependence on the actions of the intermediary . Since delivery is carried out by mail, the selling organization does not have the opportunity to influence the transaction process in any way, which often has a very negative impact on the effectiveness of such trading methods.
For the buyer, the main disadvantage of cash on delivery is the need to pay for both the product itself and its delivery, as well as the transfer of funds paid for the product to the seller.
In addition, if the buyer for some reason does not show up at the post office to receive the parcel, the seller may initiate the process of recovering all costs incurred from him through the court or in other ways provided by law.
Do I need to explain the reason for refusal?
The law does not require the formulation of a specific reason for refusal to pay cash on delivery and acceptance of the parcel, but if there is an official reluctance to pick it up, this point will need to be indicated in the return certificate.
The main regulatory act in this case will be the Rules for the provision of postal services, approved by Order of the Ministry of Telecom and Mass Communications of Russia number 234 dated July 31, 2014. Its paragraph 44 states the ability of the addressee to refuse a parcel lying in the mail, in this case a mark is placed on the notice or the item itself. The standards do not stipulate that the client must explain the reason for this or write an explanation, so the procedure is simplified.
How not to lose money
Before ordering a product from an online store, you should carefully study their website. Complete information about them must be provided, not only the street and house where their office is located, but also instructions on how to get there. Fraudsters usually do not provide their full address. As well as TIN and OGRN, which can be checked on the website of the Federal Tax Service.
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Several payment methods for goods must be specified. If you are asked to transfer money only to a bank card, this is a red flag. It is also worth reading reviews about the store to get an idea about it.
Refusal of parcels with cash on delivery
If a person does not have the desire or opportunity to pay for the parcel or simply pick it up, he can use two methods.
First of all, he can come to the post office and refuse the parcel by cash on delivery in writing. The client or the postal operator himself puts a note in the notice, and the refuser must pay for the return shipping. In the absence of an inventory, an opening is not carried out, so you need to focus on the size and condition of the box. But there is another option in which the person will not pay for the shipment.
It consists of simply ignoring the notification that the parcel is available at the department. Even if it was provided against signature, if it is ignored, no money or fines will be charged. That is, the shipment will be automatically sent to the seller after 30 days, without notifying the recipient.
Is it possible to return money for a parcel by cash on delivery from an online store?
Of course, when buying something in a store, every customer expects to return the item in cases provided for by consumer protection legislation. When a store has no walls, and the product can only be seen in the picture, there is a high probability of receiving low-quality products and facing the problem of returning the money spent.
You should know that goods purchased in a brick-and-mortar store have the same forms of buyer protection as products purchased online. The difference lies in the methods of exercising the legal right to exchange goods and return funds.
What happens if you refuse a regular parcel?
A regular parcel is subject to the same rules as the cash on delivery option, so refusing it leads to the same consequences. There is no difference other than shipping costs will be lower. But if a regular parcel arrives with the goods, this means that the client has made an advance payment and, if refused, may well lose the transferred money. This is unacceptable, therefore, if it is impossible to receive the parcel, you must first contact the seller.
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Having explained to him the situation and the fact that the goods were not received, you can ask for a full refund, minus the costs that the party incurred for the initial shipment of the goods. Usually there are no problems with this, but if there is a categorical refusal to make a return in this way, the client can file a complaint with Rospotrebnadzor, then the seller will face inspections and fines.
If the wrong product arrived by cash on delivery
There are two ways to return goods that arrived by cash on delivery. If the size and weight do not match what was ordered, you can issue a written refusal. There is no need to pay anything. Shipping is also not paid.
Important! The buyer has the right to refuse the purchase, regardless of what stage the order is at. Until the parcel is received in hand, its contents are not the property of the recipient.
If, after opening the box at the post office, it is discovered that the item enclosed in it does not meet the parameters or that something else was put there, it is necessary to deal with this situation there. Postal workers draw up an inventory of the parcel and fill out a report in two copies, one of which is sent to the seller, and the other remains with the buyer.
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Within a week after receiving the parcel, he has the right to refuse the goods. The reason for refusal can be any. But this is provided that instructions from the seller are attached to it with information on resolving controversial issues. If it is not there, then the return period increases to three months.
In this case, the goods sent back must:
- do not lose presentation;
- have checks or receipts.
If there are no payment documents, you can provide other evidence of purchasing the goods in this store. The consumer has the right to demand a partial refund of the purchase price, replacement with a similar product or refund of the full amount.
If the parcel itself returned back
Sometimes people are faced with the problem of what to do to return a package if it has been sent back. Here you should remember that if the parcel was sent back, then this process is already irreversible. The sender will need to resend it to the recipient, if necessary.
If the cargo is still at the sorting center in the sender’s city, then in order to recall the parcel, it will be enough to simply write a corresponding application, a sample of which can be found at any branch of the Russian Post.
Useful tips
It would be correct to refuse to receive an order with cash on delivery by drawing up a special act in the mail indicating the reason for the refusal. In this case, it is recommended to take a copy of the act, which the addressee may need if the seller tries to go to court with a demand for payment of financial compensation for the time and money spent on sending the goods. The act will act as documentary evidence of the fact that the parcel is damaged or does not correspond to the description on the seller’s website.
Possible consequences of failure
To avoid litigation, warn the seller about the refusal
The only legal action the seller can take is filing a lawsuit. Since ordering goods remotely is a special way of concluding a purchase and sale transaction, its parties have certain rights and obligations.
The buyer, although he has the right to refuse to purchase the item, is still obliged to reimburse the seller for the cost of its delivery.
In accordance with clause 20 of the Rules for the sale of goods by remote means, approved by Decree of the Government of the Russian Federation of September 27, 2007 N 612, a transaction for the retail sale of goods by remote means is considered concluded from the moment payment has been made or the seller has received an order from the buyer for its purchase . Therefore, if the seller has evidence of the order, he can recover from the buyer the costs incurred by him.
However, in practice this option almost never occurs. This is due to the fact that the cost of shipping is not so high, so not a single more or less reputable store will sue over such an amount.
If the seller works according to a cash on delivery scheme, the risk that the goods will not be purchased should be included in his expense item or included in the cost of the item itself. But besides the threat of possible litigation, other consequences are possible:
- Including the client in the store's blacklist. Not everyone has such lists, but most sellers still practice compiling them. It includes all clients who have not fulfilled their obligations to the seller. In the future, this may result in the store simply not cooperating with such a client and even transferring data about him to other sellers.
- Selling debt to collectors. This method is not entirely legal, but is practiced by some stores. Its essence is that employees of a collection agency call an unscrupulous buyer and demand the purchase of the parcel, threatening or insulting him. Of course, all this is illegal and does not pose any particular threat, but there is also little pleasant in it.
- Restriction on future transactions. When further placing orders in this store, the buyer may be required to make an advance payment and even reimburse postage costs for the previous parcel.
The buyer may be included in the federal database of unreliable customers, which is used by many stores. In the future, none of them will sell him goods on an advance payment basis.
But all these risks are not particularly great and are most often applied only to those buyers who have not purchased the parcel more than once.
