Retail: what to know when a firm falls into administration?

 

As advanced in a previous article, you can still get returns and refunds when a retail company goes into administration. This article will look at more important things that you should know of.

What happens if you have bought a faulty good and the shop is unable to take it back? According to consumer law, this situation means that you must turn towards the retailer, but if they are no longer operational, then you should contact the manufacturer. In most cases, its warranty lasts at least one year. If electrical products are involved, you are backed by an insurer instead of the retail outlet.

What happens to gift cards? Companies going into administration owe several creditors money that they are unable to pay back. This means that vouchers and others are now worthless. If you got a gift card as a present, the person who gave this to you might talk to their bank to process a charge back.

Various firms offer ‘buy now pay later’ schemes. Nonetheless, you must not assume that if a company goes into administration or stops trading, you can discontinue payments. Keep on settling your bill on your store branded credit card so that your credit score is not impacted.


Payments have to be made after a firm goes into administration © Royalty-free image


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