Avoiding administrative errors

When yet another big high street chain store fills its windows with closing down signs, first thoughts are always with the people who will lose their jobs: in the latest case with BHS, 11,000 people could find themselves out of work unless a buyer for the business is found.

However, closure can also have a major impact on consumers. Not just because we lose consumer choice or a store we loved, but because many will have outstanding online orders, unused gift vouchers, or items to return.

BHS has been on the high street for 88 years but administration could see restrictions put on the use of vouchers as well as affecting the returning of goods. Many of you have come to us to ask what your rights are in this situation, so here are the key things to think about.

The first thing to know is that once in administration, a firm is not legally obliged to honour gift vouchers. Thankfully in this instance BHS has said that vouchers are still valid but - yes there’s a but - can only be used for 50 per cent of the value of what you buy - so to use a £10 voucher you must spend at least £20.

If you end up in a situation where a business is refusing to honour vouchers, you can always make a claim in writing to the administrators with proof of your vouchers. There’s no guarantee you’ll get your money back and it can take up to 12 months to process the claim - so it’s up to you whether the amount is worth pursuing. You can find a template letter to help you make a claim on the Which? Consumer Rights website.

If vouchers aren’t being accepted and you bought them on your debit or credit card, you could put in a chargeback request to your bank as the vouchers have become worthless. But there’s no guarantee that your chargeback claim will be accepted.

And returning a product to a firm which is in administration might not be easy either. After all, the administrator’s job is to save the company, and that doesn’t

always involve taking things back.

BHS has said goods can be exchanged for other products of the same, or less, value within 35 days of purchase as long as you have a receipt. However, for goods bought after April 22 a refund will only be given if the object in question is faulty - and the

store manager has to authorise it.

However, if your product came with a warranty and is faulty, you can always go to the manufacturer to claim a refund or repair under the terms of that contract which should last at least a year from the date of purchase.

Email your consumer queries to askalex@which.co.uk