Kitchen Company goes Bankrupt

HMorton

Hi,

Looking for a bit of advice. We'd order a new kitchen with a local company and paid a £3,000 deposit, which I paid by Credit Card.

The original company has now ceased trading, another company says they've now bought over the original company and will fit the kitchen for us at the same price but we need to sign a new contract.

Would I be covered for the deposit I paid under Section 75 on my credit card, as I'm not sure if the new company will take into account the money I've already paid. Won't find out until Monday when I have an appointment to see them and sign the new contract.

jonesMUFCforever

Take legal advice and be very careful.
You may be signing off any claim should the new company not fulfil the contract.

If it was me I would think about getting a refund and start looking afresh.

Also speak to your credit card and see what they say about signing a new contract - get the reply in writing so you have something to go back to if things do not work out.

chanz4

section 75 maybe rejected if the new company is offering to fullfill the contract as a buy out

magpiecottage

You could write to the credit card provider, explain that the original company has ceased trading and that you wish to claim against them under Section 75.

Also tell them that the new company has offered to do the work and that if the CC provider wishes to appoint them to do the work (with you paying the balance of the cost) you are willing to do that on the basis that they will be liable for the quality of the work of the new company in the same way as they were for the original.

If they confirm that in writing you should be okay.

Otherwise get a refund and start again with the new company - putting a new deposit onto your credit card. (Which is really the safest option).

chexum

magpiecottage wrote: »

Otherwise get a refund and start again with the new company - putting a new deposit onto your credit card. (Which is really the safest option).

An idle thought - what if the OP would request a new contract, which should state that they already paid £3000, AND requesting a minimal change so that a nominal additional payment would required? On a credit card of course :cool:

[Deleted User]

get a refund from cc then negotiate a better deal with the new company,if they wont play then go elsewhere

newfoundglory

The original contact was between you and the kitchen company/credit card company. I would think you are under no obligation to agree to sign a NEW contract, and I would be seeking to recover all my money at this point. I would think Section 75 applies, as the original contract has been breached.

vax2002

£3000 is an awful lot of deposit.
the rule of thumb on deposits is never pay for what you can not afford to loose and any company asking for such a sizeable deposit is a warning sign of an insolvent company.

chattychappy

magpiecottage wrote: »

Also tell them that the new company has offered to do the work and that if the CC provider wishes to appoint them to do the work (with you paying the balance of the cost)

No need to pay the balance of the cost.

s75 means the CC is jointly liable for performing the contract. Whilst people are often happy with a refund, that's not the basis of the legislation.

Obviously you want all the parties to agree beforehand. But if the CC is unwilling to agree terms with the new company, then really it's up to the CC to find someone else to do the job or pay damages - which would be the cost of the OP finding someone else to do it.