Moben, then Habitat and Jane Norman: How to get your money back
Posted on July 2nd, 2011
Thousands of customers are in shopping limbo waiting to hear if they will get their goods after big name stores have gone under. We explain how to protect yourself when buying – either with a credit card or debit card.
Fashion chain Jane Norman is the latest firm to feel the brunt of the retailing downturn, as it fell into administration earlier today.
Last week Habitat and HomeForms Moben Kitchens announced their exit from the UK high street with financial troubles of their own.
The news left thousands of customers in shopping limbo as they wait to hear if the stores will honour their deposits and deliveries.
But what happens when a shop goes bust and youre waiting for your order? We explain how to protect your purchases.
Where could there be problems?
When you order big ticket items, such as sofas, TVs and kitchens you are often expected to stump up a deposit and given a delivery date, sometimes more than six weeks away.
During this time if a company goes bust, youre left waiting to see if your new purchase will arrive or if you will lose your deposit.
Meanwhile, when buying clothes online, or other goods that should be sent out immediately, you are still at risk if the shop goes under while you are waiting for delivery.
Obviously, if you pay for a holiday or flights, then you will be left waiting before you can take advantage of your purchase. Once more, if the firm goes bust before you travel, you are at risk of losing out.
How to protect yourself
Credit card
When purchasing anything over 100 and under 30,000 you should make sure you use a credit card rather than a debit card.
If you do you will be covered under Section 75 of the Consumer Credit Act. If anything goes wrong with your purchase then the credit card company must take responsibility and you can contact them to get your money back.
Debit card
If the deposit or item is less than 100 then you should pay by debit card as customers are protected by the Chargeback scheme.
This is where Visa, Mastercard or American Express reverse the transaction. However, with Chargeback the rules vary between banks and card providers, so its best to check before purchasing the item. Once youre aware of a problem you have 120 days to contact your card provider.
What if you paid by cash or cheque?
Unfortunately, there is no protection for paying by cash or cheque. Customers who paid for items this way will have to contact the firms administrators regarding getting their money back.
Similar Posts:
- Debit card users ‘should try dollar-cost averaging when travelling’
- Lax online shopping security leaves consumers open to fraud
- Aussies to use credit cards to buy drive-through groceries?
- Banco Popular Offers New York and New Jersey Checking Customers $125 and a Free Grill
- Seven ways to slash your supermarket spend
Tags: Get, Get Money
Filed under Credit Cards |