No refund after payment policy illegal, court rules

Peace Mass Transit, a Nigerian transport company, has reacted to a court judgement nullifying its ‘no refund after payment’ policy.

The “no refund policy” is mostly used by service providers to prevent returning payments made to them by their clients.

Last year, Patrick Chukwuma, a lawyer, had sued the company for not refunding money paid for an unsuccessful trip.

In the suit marked E/514/2021 and filed on his behalf by Tochukwu Odo, his counsel, Chukmuma said he had purchased a ticket from the Obollor-Afor branch of the company to convey him to Enugu on February 10, 2021.

He claimed that after hours of delay caused by absence of passengers, he had returned to the ticketing office and asked for a refund of the N500 he paid as transport fare.

The plaintiff, however, said the company’s staff denied his request for a refund, citing the organisation’s ‘no refund after payment’ policy.

During the court session on Thursday, Chukwuma had prayed the court to determine “whether the Defendant’s policy of ‘no refund of money after payment’ is in violation of section 120 of the Federal Competition and Consumer Protection Act 2018 especially when the contractual obligation to convey the plaintiff to his preferred location was terminated.”

But Titus Odo, the company’s lawyer, raised technical arguments on the jurisdiction of the court and mode of commencement of the suit.

In his ruling, C.O. Ajah, the judge, declared the company’s “no refund policy” as illegal, null and void based on provisions of sections 120, 104, 129 (1) (a) and (b) (iii) of the Federal Competition and Consumer Protection Act, 2018.

The judge held that the refusal of the company to refund the plaintiff’s transport fare was unlawful.

Ajah also ordered the defendant to pay the sum of N500,000 as damages to the plaintiff.

In a statement on Friday by Ifeanyi Enete, its general manager, the company said it is currently reviewing the court judgement and would announce its next decision in due course.

Enete said “as a routine
routine”, the company usually make refunds “in the event of unforeseen service failure, particularly when it is operationally impossible to fully deliver.”

“Peace Mass Transit (PMT) Limited, having been made aware of Thursday’s judgement of an Enugu High Court in a civil suit instituted by a customer, is taking immediate steps to address the outcome,” the statement reads.

“While we review the said judgement with our lawyers to come to a decision on the next best line of action, we feel obliged to make the following clarifications, with regards to the way and manner we operate as a service enterprise, viz:

“As a routine, we make refunds in the event of unforeseen service failure, particularly when it is operationally impossible to fully deliver.

“In our industry, we have the best record and capacity to move passengers on, and get them to their destinations safely, in the event of a break-down, in the course of a journey.

“Our longevity so far, and appreciable record of service, have been fully merited coming only from God and loyalty, support and commitment of our core customers who continue to partner with us, making valuable, selfless inputs to how we can serve them better, always. We don’t, and can never take your patronage for granted.

“However, we don’t rule out the possibility that some overzealous staff down the line, can sometimes constitute obstacles to realisation of our corporate policy of prompt, enjoyable and safer road transport service for our valued customers. We shall continue to train, re- train and reorient them to become better service delivery agents.

“Meanwhile, we urge the travelling public, particularly our esteemed dedicated customers, to remain calm and continue to support us as we strive to provide them always, with better, safer and affordable travel facilities.”