Liquidated company reopened with new ownership and asked me to claim under Section 75

benwade

Hi,
I have my wedding booked with a company which went into liquidation before the COVID-19 issues.  At the time they told us the company had been bought out and our contract had been transferred to the new company so I don't need to do anything.
They have now contacted me to say they would like me to claim all payments that I made to the old company through my credit card and pay back to the new company and they are offering an incentive if I do this.

I understand that they are trying to keep the company going by getting in as much cash as possible and clearly it's in my interest that they keep going but is this an acceptable and legal request from them?

Thanks,
Ben

fwor

benwade said:

is this an acceptable and legal request from them?

I certainly would not pay them a second time, because if they were on a knife edge before the current crisis started, there's a good chance they will fold with your money (again).

jonesMUFCforever

I agree - but you have a moral dilemma now - if you tell your credit card what you told us there is a chance they won't pay out at all. 

Thrugelmir

If they've gone bust once. Why are they going to run the company any better this time? 

benwade

Thanks for all the replies.
I agree with all of you and it's a big worry for us, especially as it's regarding our wedding.  If I were to do as they requested and made the second payment on card I assume I would also be covered for that second payment?
My biggest worry though is if they are asking me to do something illegal by claiming from the credit card so I can pay them a second time.  It is the same wedding venue with the same management but owned by a different company so as far as I can see it is not technically paying the same company again?

digalumps

Since the original company has gone into liquidation and assuming there are no assets there for you to get your money back, your route is via your credit card company.

You should therefore claim under section 75 - there's nothing illegal about that and there's nothing illegal about them telling you to do that. Indeed I would suggest most people on here would also tell you to do that.

Regarding where you then go to have your wedding that is completely up to you - it will be a totally separate contract with a totally new company (even if it is the original company in a new disguise).

You might want, as others have said, to reflect on the fact that they may well go insolvent again

maxximus75

So in essence... the company has had/spent your money, they want your credit card company to foot the bill for you so you can again spend with their "new" company.  They get their money twice and no reason for them to not do the same thing, again.

Personally, I would be running for the hills and wouldn't trust or use them.  An incentive? Hmmmm

benwade

maxximus75 said:

So in essence... the company has had/spent your money, they want your credit card company to foot the bill for you so you can again spend with their "new" company.  They get their money twice and no reason for them to not do the same thing, again.

Personally, I would be running for the hills and wouldn't trust or use them.  An incentive? Hmmmm

Yes you summed it up correctly maxximus75. 

However, we have our hearts set on this venue and have many other arrangements set up with them which makes it difficult to change. If we do as they have requested and they went in to liquidation again, I assume we would be covered by section 75 with the new company and contract?

born_again

Ask your card provider for a chargeback as the company has closed down. If it is the same group in the background. They could well end up paying for it.

digalumps

yes if a new company and contract then in theory you could initiate a second claim if they go insolvent again

not sure what the credit card company would make of it though - to lose one wedding might be considered misfortune but to lose two might be considered...

Thrugelmir

benwade said:

 It is the same wedding venue with the same management but owned by a different company so as far as I can see it is not technically paying the same company again?

Personally I would undertake some digging. What actually happened to the previous business? Was it a limited company.  Do they actually own the venue? 

Sounds as if they maybe trying to double pocket your money. Such activity isn't that of a reputable business.