Your rights when a retailer goes into administration

Companies going into administration is becoming ever more common place. To help you understand where you stand, Hannah Maundrell from explains your rights when a retailer you make a purchase from goes into administration.

  1. If you have gift vouchers or store credit, spend them quickly while the shops are still open.
  2. If you want to make an exchange, it's worth going into the store and asking if they will. It is unlikely they will be giving refunds, but it's worth checking if you need one.
  3. If you have placed an order online, first contact the company to see if you are still going to receive it. If the company is in the latter stages of administration you may need to go and collect it.
  4. If you've paid for an item worth over £100 on a credit card, Section 75 of the Consumer Credit Act means you can ask your credit card company for a refund.
  5. If you shopped with your debit card or spent under a £100 on your credit card, you might be able to make a Chargeback claim, speak to your card provider.
  6. If you paid for any items with cash and the shop is refusing a refund or exchange you should find out who is acting as the retailer's administrator.
  7. The administrator's details should be found on the retailer's website or you can check Companies House.
  8. Contact the administrator explaining your situation and include receipts or order confirmations.
  9. There are no guarantees that you will get any money back from the administrators, it depends on how much the retailer owes. For more information about your rights speak to Citizens Advice.
  10. Shops that go into administration often remain open for as long as they can to sell as much stock as possible.

There are bargains to be had, as retailers will slash their prices, if you don't mind taking the risk that goods might be faulty and you might not get a refund or replacement without taking it up with their administrators.

  • There are more money-saving tips in every issue of Yours magazine, out every fortnight on a Tuesday.