Don’t lose out when shops go bust!
Several retailers have disappeared from the high street over the past few years. Most recently, The Body Shop and Ted Baker made the headlines when they entered administration, leaving their future hanging in the air. While this doesn’t necessarily mean that the company will stop trading altogether, it usually means that you’ll find it more difficult to exercise your rights. Here, we explain what you’re entitled to and how to get your money back.
PURCHASING POWER
If a high-street retailer enters into administration, you can still purchase both in-store and online. But if you do, you risk not being able to get your money back if you need to make a return and the retailer has subsequently stopped trading. You’ll need to make a claim with the administrator, but keep in mind that you won’t be the only one and you may well find yourself at the bottom of the long list of people wanting their money back.
MAKING A CLAIM
If you buy something using your credit card, you may be able to make a claim via your provider under something known as Section 75, as long as your purchase was between £100 and £30,000. If you used a debit card,
claimnudsing you can try to chargeback, which means your bank will try to get the money back, but it will also be in line with other creditors. Remember, these processes can take time and there are no guarantees.
SPEND WHILE YOU CAN
Always use a company’s gift card as soon as possible when it announces that it’s gone into administration. There’s a risk that the terms and conditions of a gift card could change and it could be deemed worthless. So, spend it while you can. If you need to claim a refund, again you’ll need to apply via the administrator.
IS THE COMPANY STILL TRADING? It’s not just high-street stores that can fall into financial difficulty. Small businesses and travel companies can fail too, so here’s where to check and get help.
You can find out if a company has stopped trading by looking at Companies House on gov.uk. For sole traders, see the Insolvency Register, which is also at gov.uk.
For travel companies, search ABTA (abta. com) and for Atol-protected companies, you can check via CAA (caa.co.uk). You can also obtain advice from Citizens Advice, either in person or at citizensadvice.org.uk.