Help - Supplier has ceased trading, what to do as a creditor?

LokiOfNZ

Hi

We ordered some bridesmaids dresses for our upcoming wedding from a high street shop for £400 on a Visa Debit card. Before the order was fulfilled (ie we dont have the dresses) the shop has contacted us saying they have ceased trading and we are now a creditor to the sum for £400. They mention that any creditor who petitions for "winding up" will not be opposed.

What should we do?

I've read that you need to be a creditor for at least £750 before you can apply for winding up, but am still unsure what that even means?

Should we contact our bank HSBC and see if they can apply their Visa Chargeback rules since we never received the goods we paid for?

Or is it just easiest now to try follow up our wedding insurance and see if it will cover this?

grumbler

LokiOfNZ wrote: »

Should we contact our bank HSBC and see if they can apply their Visa Chargeback rules since we never received the goods we paid for?

This would be my first step.

Or is it just easiest now to try follow up our wedding insurance and see if it will cover this?

Do you mean reading the policy at last and finding out what exactly you paid money for?

agrinnall

I can't see any reason why Chargeback would fail, and that way you'll get all the money back, if you claim on your insurance there will probably be an excess.

Aquamania

LokiOfNZ wrote: »

Hi

We ordered some bridesmaids dresses for our upcoming wedding from a high street shop for £400 on a Visa Debit card. Before the order was fulfilled (ie we dont have the dresses) the shop has contacted us saying they have ceased trading and we are now a creditor to the sum for £400. They mention that any creditor who petitions for "winding up" will not be opposed.

What should we do?

I've read that you need to be a creditor for at least £750 before you can apply for winding up, but am still unsure what that even means?

Should we contact our bank HSBC and see if they can apply their Visa Chargeback rules since we never received the goods we paid for?

Or is it just easiest now to try follow up our wedding insurance and see if it will cover this?

So they have not yet gone into administration/liquidation, they have just taken your money and can't be bothered to supply what you purchased?

Yell them you want a full and immediate refund of your money otherwise you will seek legal advice.
Sounds like possible illegal trading or just a downright scammer to me.

Probably worth getting a free 30 minute initial talk with a local solicitor anyway ... I think it will be time well invested

Name and shame this high street retailer here, so that others are forewarned.

Might be worth posting this question on the consumer rights board too

Aquamania

agrinnall wrote: »

I can't see any reason why Chargeback would fail, and that way you'll get all the money back, if you claim on your insurance there will probably be an excess.

Because chargeback relies on the co-operation of the seller and/or there being any money in the account to collect.

This seems like a scammer who would no doubt have cleared their accounts of any money, and if they won't give the OP the money back directly, I doubt they will agree to give it to the card issuer either.

Aquamania

This advice sheet from the CAB may assist you too

http://www.adviceguide.org.uk/england/c_supplier_has_gone_out_of_business.pdf

Aquamania

LokiOfNZ wrote: »

...I've read that you need to be a creditor for at least £750 before you can apply for winding up, but am still unsure what that even means?...

In order to petition for someone's bankruptcy, they must owe at least £750

If they owed you £750 then you could do it alone.

As they only currently owe you £400, then you will need to combine with another creditor or creditors so that the amount owed is at least £750

Or you could waste money on court fees and collection fees etc until they owe you £750 and then petition for their bankruptcy.

I think the first thing you need to do is establish what assets, if any, they have to repay you. You probably should have done this before handing over 400 of your hard earned pounds. Put that down in your lessons learned book

I would advise you not to waste another penny on this scammer until you have established what assets, if any, they have to possibly repay you.

grumbler

Aquamania wrote: »

Because chargeback relies on the co-operation of the seller and/or there being any money in the account to collect.

A bank insider here claimed that it wasn't the case and that it was the merchant's bank that takes the hit if there is no money in the merchant's account, that MSE seem to agree with:

Visa Debit and Visa Credit card difference advice

agrinnall

grumbler wrote: »

A bank insider here claimed that it wasn't the case and that it was the merchant's bank that takes the hit if there is no money in the merchant's account, that MSE seem to agree with:

Visa Debit and Visa Credit card difference advice

I think that must have been what I was thinking of when I suggested a Chargeback would be successful.

Aquamania

grumbler wrote: »

A bank insider here claimed that it wasn't the case and that it was the merchant's bank that takes the hit if there is no money in the merchant's account, that MSE seem to agree with:

Visa Debit and Visa Credit card difference advice

Well I can only use the wise words of someone not a million miles away

grumbler wrote: »

OK, prove me wrong with some real facts and I'll be happy to stand corrected.

grumbler

I was happy to stand corrected after finding a confirmation in MSE article.
I hope the OP will post the result soon. Will it be a fact reliable enough for you?