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It is totally irrelevant that the items were bought in a clearance sale. Unless they are sold as faulty goods and they specify the fault then they are still new goods and therefore you still have exactly the same consumer protection as paying full price.

The distance selling regulations do not replace the Sale of Good Act and other consumer protection laws. They are an enhancement to them if you have bought say over the internet or telephone and have not had chance to see/inspect the goods. As I understand it the 7 day rule applies to the right to cancel the contract (supply of goods) and obtain a refund. That is you have the right to get your money back by simply changing your mind (ie decide you don't want the goods or want to buy them from that supplier) within 7 days of receipt and you do not need to tell them why or have a reaon for doing so. This does not apply to faulty goods. That is my interpretation but of course I could be wrong.

They have other options to refund other than to the card used. They can offer a credit for other purchases, they can forward a cheque or make a direct presentation to your bank. If this was not allowed how do they go about refunding someone within their alleged 60 day card refund window if that person has cancelled their card and no longer has that account with the card supplier? The money laundering regulations do not allow them to hold monies due to customers for refund without refunding it by any means possible.

The goods appear faulty and they should therefore be dealing with this matter.

Good luck,