Claim on credit card for wedding dress refund after shop goes bust

jem16

Posted this on the credit card forum but might be better placed here.


Looking for some help on what to do next.

My future daughter-in-law bought her wedding dress from Capri Skies which suddenly closed down two weeks ago. My son used his credit card to purchase the dress.

My son wrote to his credit card company requesting a refund and quoting section 75. He included a copy of the receipt from Capri Skies and a printed statement from their website saying that the shops were forced to close.

He received a reply from the credit card company yetserday saying that as the wedding was not until 28th May 2010 they could not process a refund until after that date! However they may be able to claim earlier if he was able to supply categorical proof thet the company had been put into administration and the date.

Capri Skies is not a ltd company and from what I understand only a limited company can be put into administration. The company owner is apparently liable herself and will probably be declared bankrupt.
We have emailed the owner via the email address posted on their statement. Her reply is that they will go into administration next week which is totally contradictory to their statement.

Basically my future daughter-in-law needs the refund now to be able to buy her dress again. It is obviously not going to come from a shop which has ceased trading. Does section 75 only cover refunds if the company is in administration?

Ivory_Tinkler

CAREFUL CLICKING THE ABOVE LINK....I just clicked and got a virus alert for some sort of trojan that thankfully got picked up by by virus software!

Sorry OP - I haven't got any advice about what to do in this situation but I'm sure someone more knowledgeable will come along shortly.

jem16

Ivory_Tinkler wrote: »

CAREFUL CLICKING THE ABOVE LINK....I just clicked and got a virus alert for some sort of trojan that thankfully got picked up by by virus software!

I was made aware of this earlier and changed the link to one which I beilieved to be clean. My virus checker showed up a problem earlier too.

However I have now removed this link for safety.

Sorry OP - I haven't got any advice about what to do in this situation but I'm sure someone more knowledgeable will come along shortly.

Thanks.

dacouch

Do they have wedding insurance by any chance?

jem16

dacouch wrote: »

Do they have wedding insurance by any chance?

They do - Debenhams wedding insurance.

dacouch

It normally covers financial failure of a supplier

dacouch

http://www.debenhamsweddinginsurance.com/goto/debenhams_wedding_200910_website_scheme/documents/23032009160703Debenhams_Wedding_Key_Facts_Approved_Removed.pdf

6. financial failure of any service provider.
SECTION G – FAILURE OF SUPPLIERS
What You Are Covered For:
Following the bankruptcy or liquidation of any pre-booked wedding services supplier contracted
to and paid by you, we will pay up to the amount detailed in the summary for the following:
1. irrecoverable deposits,
2. additional costs in arranging alternative wedding services.
Cover under this section commences from the date the premium is paid, and applies until
completion of the wedding or a claim being made under this section of the policy, whichever
occurs first.
What You Are Not Covered For:
We will not pay for the following in respect of claims made under section G:
1. any sums recoverable from any other source
2. any costs which would have been incurred had the original suppler not ceased trading
3. any costs from the financial failure of a wedding gifts supplier or any supplier not contracted by
and pre-paid by you
4. any costs from the financial failure of a professional wedding planner
5. any costs where no written contractual agreement exists between you and the wedding
services supplier.

jem16

It is something we are keeping in mind. However there is an excess of £25 to pay which we won't lose if the credit card company refund the money.

Won't the insurance also require proof that Capri Skies have ceased trading?

I also don't like this section

Cover under this section commences from the date the premium is paid, and applies until
completion of the wedding or a claim being made under this section of the policy, whichever
occurs first.

Surely if we make a claim for the wedding dress it then leaves us unable to make any further claim should any other supplier go under?

dacouch

Yes if you make a claim under that section you cannot claim again for supplier failure again, its a fairly common wording on most wedding policies.

The obvious thing to do iis pursue a claim under the credit card under section 75 as they are jointly liable, however if you are having problems you could always claim under the wedding insurance as a back up.

The wedding policy appears to include Legal Expenses, this often also gives free legal advice about the wedding. If you dig the policy out, on one of the first few or last few pages it will tell you how to make a claim. It normally has the normal rate telephone number for free legal advice. You could always ring this and find out how you stand legally with regard the supplier and / or credit card company

mc33033

jem16 wrote: »

Does section 75 only cover refunds if the company is in administration?

Hi Jem16

No. In a nutshell you argument with the CC company is this:

1) You ordered a dress
2) The trader is in breach of contract for failing to supply dress on agreed dated (which must be a date before the wedding!)
3) Under S75 you have the option of taking the claim out against CC company OR supplier, there is no obligation to choose one over the other
4) You therefore are holding the CC provider liable for breach of contract under S75 CCA 1974
5) Find the equivalent dress from another supplier and get a quote from them for the same/equivalent dress to be supplied before the wedding date and advise your CC company that they are responsible for the losses directly flowing from the breach of contract and if they fail to refund you for the dress amount you will purchase this equivalent dress and take them through the small claims track for breach of contract for damages equal to this new dress.

Hopefully someone in the CC company will realise it will be quicker and easier to refund you the original cost of the dress rather than risk full damages for the breach of contract. HTH

jem16

mc33033 wrote: »

2) The trader is in breach of contract for failing to supply dress on agreed dated (which must be a date before the wedding!)

Just one question - the order form (which Nationwide asked for a copy of) shows the wedding date but no agreed delivery date. This is obviously where cc company is trying it on.

Does this matter?