But, she didn't buy the ticket from Northern, but probably from Scotrail or Virgin (or an Internet sales outlet). Refunds are normally given only at the location where you purchased the ticket (e.g. Glasgow Central).
Anyway the example given is really little different to me spending over £100 on an Anytime ticket to London and siting next to some one who paid £25 for an Advance, and they tell me I could have saved £75 by buying in Advance. "yeh, I know mate, why do you get a reserved seat when I might have to stand?"