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Transport company loses legal battle over ‘No refund after payment’ policy

Transport company loses legal battle over ‘No refund after payment’ policy

Peace Mass Transit, a transport and logistics company, has lost its legal battle in a matter bordering on refund of money to passengers for trips not undertaken.

It was gathered that the incident that led to the suit occurred on 10th February, 2021, when the Plaintiff, Patrick C. Chukwuma, purchased a ticket from the Obollor-Afor branch of Peace Mass Transit Limited to convey him to Enugu.

Following a two-hour delay occasioned by the absence of passengers, the Plaintiff returned to the ticketing office and asked for a refund of the N500 he had paid as the transportation fare.

However, the staff of Peace Mass Transit refused to refund the money, insisting that their company policy was that money paid for transport fare cannot be returned to the passenger while citing the statement written on their ticket to that effect as conclusive proof of their position.

When the Plaintiff tried to explain to them that their policy was unlawful, as the law mandates them to refund fares for services that have not been provided they retorted in a rude manner, prompting the learned counsel to leave the Peace Mass Transit park and seek alternative means of traveling back to Enugu.

A letter written by the lawyer to the Peace Mass Group of Companies demanding an apology and refund was neglected, prompting the lawyer’s law firm to institute the legal action.

Delivering its judgement, the Court, through Hon. Justice C.O. Ajah, declared the no refund policy as illegal, null and void in light of the provisions of Sections 120, 104, 129 (1) (a) and (b) (iii) of the Federal Competition and Consumer Protection Act, 2018.

The Court further ordered the Defendant, Peace Mass Transit, to pay the sum of N500,000 as damages to the Plaintiff.

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