What to do when a company has gone into administration

Unfortunately, due to the current financial climate, more and more companies are going out of business, and this can leave many of us high and dry, with little or no form of redress when things have gone wrong.

There are a few steps that we can take to try to resolve outstanding issues:

• Find out whether an administrator has been appointed - details can often be found on the company's website, or in the press.
• If an administrator has been appointed, write to them and log your claim attaching any copies of paperwork which may help to prove your claim, the method in which you have made payment is also very important in this type of situation.
• If your claim relates to individual items which were purchased for over £100 (but not more than £30,000), and a portion or all of the amount was paid for using a credit card, then you may have an "equal liability" claim against the credit card firm.
• You are well advised to write to the credit card firm, attaching any copies of paperwork which may help to prove your claim, stating that they are "equally liable" for your claim under section 75 of the Consumer Credit Act 1974.
• If, however, you have purchased the goods using a Visa debit card or a Mastercard debit card, it is worth contacting your bank to see if you are able to be reimbursed under a Charge Back Scheme. You will need to contact your bank within 120 days of realising that there is a problem.
• It is important to note that unlike the protection offered when using a credit card, there is no legal obligation on the bank when payment has been made using a debit card, it is merely a scheme.

If your situation is still unclear or unresolved, you can call the Government-funded Consumer Direct helpline between Monday to Friday 9am - 5pm to speak directly to an advisor who may be able to offer more personalised advice. The number is 08454 04 05 06.

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Source:

Consumer Direct

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