A number of Boohoo customers say they have been left out of pocket after returning items and receiving a gift card as a refund, despite paying by other methods.
Several people told The i Paper they definitely opted for a refund to their original method with Boohoo having refunded to a gift card instead.
Although a refund was acknowledged by the company, shoppers argue a gift card is not equivalent to a cash return as it cannot be spent elsewhere.
Paula Fussell, 52, from Eastbourne, placed an order for nearly £200 on 30 November last year on buy now pay later platform, Klarna, paying extra for next day delivery so she could get the items in time for her work Christmas party.
Despite the next day delivery, the items arrived late and so Ms Fussell returned them on 5 December – well within the 28 days returns window stated on the Boohoo website.
When making the return she selected “original payment method” but instead received a gift card for the full amount she paid.
People have 90 days to spend a gift card from the day they receive it if they select it as their return option, according to the Boohoo website, and will receive 20 per cent extra of their order value on top.
“I received a gift card which I did not want. Had I known [I would get one] I would never have ordered,” Ms Fussell said.
She reached out to Boohoo, only to be told she had selected the “gift card” option and it could be not changed.
Ms Fussell escalated the matter further and was eventually able to get her money sent back to her original payment method.
‘Lies and gaslighting’
Michelle Gilbert, from Devon, placed an order for more than £200 in November 2025 with her items arriving late, despite having premier membership that provides you with free next day delivery.
When Ms Gilbert went to process her refund, she said she was not given the option to select a repayment method, with the amount automatically defaulting to a gift card.
“This is where the lies, deceit and gaslighting starts as [Boohoo’s] staff just continue to tell you, you have selected gift card, and it can’t be changed.
“Why on earth would anyone select that [option] is beyond me as their gift cards expire within 90 days,” she said.
Gilbert told The i Paper she has only just received a partial refund to her bank card after raising a complaint and is pursuing the retailer for the rest of the amount.
Claire Pyatt, 40, from Sheffield, also experienced similar issues with the retailer. Although for a much smaller amount than Ms Fussell and Ms Gilbert, she said it was the “principle of it” which has made her chase for her money back.
Ms Pyatt also placed her order via Klarna and returned the items during the 28-day window, selecting the “original payment method” option.
Like the other cases, she was told she had selected the gift card option, and this could not be changed, even though this was not the case.
Ms Pyatt found it difficult to get a hold of anyone at Boohoo, being forced to speak with AI chatbots.
She raised a formal complaint but has not heard back since.
Ms Pyatt said: “Based on what I experienced, it appears customers may be left with little practical choice but to accept gift cards when requesting refunds, which I believe raises serious consumer rights concerns.
“I hope Boohoo will clarify whether this is a system issue rather than a deliberate policy. And do the right thing and issue proper refunds to those affected.”
A Boohoo spokesperson said: “We are aware that a number of customers have had issues with their refunds, and we are working with these customers directly to resolve this.”
Your rights if a refund is rejected
Barbara Neilan, founding partner at Jamieson Law, said: “They are possibly acting unlawfully – under UK consumer law, a company can default to giving refunds on gift cards, but only if the consumer has clearly and actively chosen that option.
“If it’s not clear that the consumer has actively consented to the gift card refund option, that raises red flags. It’s not automatically unlawful, but if Boohoo has designed the process so consumers end up with gift cards they didn’t deliberately choose, that could cause a problem.
“If the consumer has asked for a refund to their original payment method, but received a gift card instead, that’s most likely a breach of the distance selling regulations. A gift card can’t be imposed, even if it offers extra value.”
Martyn James, a consumer expert, said those who have returned online items within the return window are “absolutely” entitled to a refund back to their card if that is the option they have chosen.
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“This isn’t up for negotiation. No vouchers, no credit notes, no store credit. It’s a full refund.
“If the shop says on its website that you can have a refund to the card, then it must honour this – as you have entered into the agreement on the understanding that you could get a cash refund,” he added.
James said if people paid by card they could request a charge back from their bank, alternatively they could go through the PayPal buyer dispute resolution process if they paid through the platform.
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