Kitchen & Bedroom Company Went Bust - How to get money back.

GMaN1969

Recently a big kitchen / bedroom / bathroom company went out of business but it appears were still taking money from customers right up till they folded.
I had half of the new kitchen delivered the day before they called in the liquidators (so they knew this was coming)  but with so many missing items it is useless as there was renovation work required to be completed before the new installation started. 

Stupidly I paid a lot of money by bank transfer to this company and it appears the consumer has no protection financially with the banks. However I didn't want to take out a credit agreement and my credit card doesn't have a high limit so would not have covered the deposit. Sadly the banks do not want to know in this case. 

I have been speaking to the administration company and have now lodged a case to try and get my money back but I was wondering is there any other way apart from just waiting. 

To many companies in the UK are going to the wall and the consumer is not protected unless you pay by credit card, financial agreement and possibly debit card. These companies walk away no issue. 
Yes I feel for the people losing their jobs but these bigger companies should be held accountable by a higher governing financial body but it always seems to late before anyone acts. 

soolin

I am always very sorry to hear that people have lost out to these companies. Apart from waiting to see what percentage you can eventually get back from the liquidators I personally can't think of any other way of retrieving your money, sorry. Perhaps someone else might be able to log in here later and help.

Bank transfers should be a red flag for an established company- I walked away from a local company that I had engaged to build my conservatory purely because after several appointments to measure and quote they refused to accept anything other than a BT for the £4000. We even tried offering a small part on a credit card but they were unable to take that either.

I agree that even established companies seem to be having issues at the moment and taking customer money until the point of calling in liquidators, but we can stay safe by using a card, we don't need a credit agreement. Look at the various protections allowed by both credit and debit cards, work out what is best and what will safeguard you before going ahead.. Even paying a small amount with certain cards can give you protection, your lower available balance wouldn't have mattered if enough could have been used for part payment.

Banks have started trying to warn customers now about the risks of a BT, I can't pay a new person or a company by bank transfer without getting warnings about it being risky, and having to confirm I understand before I go ahead. 

All you can do is wait and see what percentage becomes available from the liquidators, you are unlikely to be able to jump the queue for any payout, nor insist on a full repayment unfortunately.

born_again

GMaN1969 said:

Recently a big kitchen / bedroom / bathroom company went out of business but it appears were still taking money from customers right up till they folded.
I had half of the new kitchen delivered the day before they called in the liquidators (so they knew this was coming)  but with so many missing items it is useless as there was renovation work required to be completed before the new installation started. 

Stupidly I paid a lot of money by bank transfer to this company and it appears the consumer has no protection financially with the banks. However I didn't want to take out a credit agreement and my credit card doesn't have a high limit so would not have covered the deposit. Sadly the banks do not want to know in this case. 

I have been speaking to the administration company and have now lodged a case to try and get my money back but I was wondering is there any other way apart from just waiting. 

To many companies in the UK are going to the wall and the consumer is not protected unless you pay by credit card, financial agreement and possibly debit card. These companies walk away no issue. 
Yes I feel for the people losing their jobs but these bigger companies should be held accountable by a higher governing financial body but it always seems to late before anyone acts. 

Sadly making a payment via bank transfer is the same as giving cash. So you are stuck with being in the queue with the rest of the creditors.

But on the bolded part, companies do not know that they will be bringing in a administrator. That is the last option, before that happens they are working with creditors to see if they can broker a new deal to keep trading.
In reality in you case, would you prefer them not to deliver anything or half?

TELLIT01

The OP said that his credit card limit was too low to pay for the deposit.  Sadly they clearly didn't realise that paying any amount by credit card would have given them protection in this situation.

user1977

born_again said:

GMaN1969 said:

Recently a big kitchen / bedroom / bathroom company went out of business but it appears were still taking money from customers right up till they folded.
I had half of the new kitchen delivered the day before they called in the liquidators (so they knew this was coming)  but with so many missing items it is useless as there was renovation work required to be completed before the new installation started. 

Stupidly I paid a lot of money by bank transfer to this company and it appears the consumer has no protection financially with the banks. However I didn't want to take out a credit agreement and my credit card doesn't have a high limit so would not have covered the deposit. Sadly the banks do not want to know in this case. 

I have been speaking to the administration company and have now lodged a case to try and get my money back but I was wondering is there any other way apart from just waiting. 

To many companies in the UK are going to the wall and the consumer is not protected unless you pay by credit card, financial agreement and possibly debit card. These companies walk away no issue. 
Yes I feel for the people losing their jobs but these bigger companies should be held accountable by a higher governing financial body but it always seems to late before anyone acts. 

But on the bolded part, companies do not know that they will be bringing in a administrator. That is the last option, before that happens they are working with creditors to see if they can broker a new deal to keep trading.

Quite - this sort of thing tends to get complained about a lot, but there can't be some sort of interim stage where the company announces they think they're about to go bust - otherwise it becomes a self-fulfilling prophecy.

Okell

Quick question - possibly for @born_again - is a chargeback possible in this sort of position if the OP had paid by a debit card?

My understanding is that a chargeback is paid out of the trader's own bank account.  Is that possible when a trader goes bust/into liquidation?

sheramber

The staff would have no idea of impending closure. That decision is made by the directors with no consultation with the staff.

km1500

I think if I was going to have anything major done and the installer did not accept credit cards and I would explore asking them if they do a credit agreements.

they may even be keen to do this they may even get a referral fee in any case you can pay it off as soon as you are happy with the work

eskbanker

Okell said:

Quick question - possibly for @born_again - is a chargeback possible in this sort of position if the OP had paid by a debit card?

My understanding is that a chargeback is paid out of the trader's own bank account.  Is that possible when a trader goes bust/into liquidation?

Chargebacks will normally be recovered from the trader's account but will be paid by the trader's bank if there aren't sufficient funds there.

macman

You didn't ever have to take out a credit agreement or pay it all by credit card. A mere £100 deposit on a card would have given you S75 protection for the full value of the order , assuming less than £30k..

born_again

Okell said:

Quick question - possibly for @born_again - is a chargeback possible in this sort of position if the OP had paid by a debit card?

My understanding is that a chargeback is paid out of the trader's own bank account.  Is that possible when a trader goes bust/into liquidation?

Yes.
As per @eskbanker funds come from retailer merchant bank. So no problem getting a refund due to them being bust.