Driveway company in liquidation - how do I get compensation?

ThranduilsQueen

Hi, I'm hoping for some help - my first post here. Not sure if I am allowed to name a company (I read the rules but I couldn't see anything clearly stating you can or cannot name a company), so I won't name them, just explain the situation.

In October 2021, we had a new resin driveway laid, for which we paid £8,395. We were given a Warranty Certificate for 10 years. Now, not even four years later, the driveway looks horrible and it's cracking all over the place, in one place it's a H&S hazard as it's on a step down from the back door.

To be honest, we had some issues with the company even during the process, with difficulties in responding to emails, frequent changes in the person who would contact us etc. 

As I suddenly couldn't get hold of them AT ALL this year, I checked Companies House only to discover that - the irony! - on my birthday this year the firm had gone into liquidation!

I emailed the liquidators and received the following message back:
"Afternoon, [name]

I refer to your e-mail below and apologise for the delay in coming back to you.

As you are aware, the company is in liquidation and had ceased trading prior to the liquidation commencing. Under the circumstances, the company is not in a position to be able to carry our any remedial works to your driveway. Unfortunately, it also means that the company is not able to honour the guarantee that you were given either.

To the extent that you have suffered a loss as a result of this, in relation to the rectification works that are required, this leaves you with an unsecured claim in the liquidation of the company. 

Unfortunately, based on information currently available, it is unlikely that there will be sufficient funds realised to allow a dividend to be paid to the unsecured creditors in this matter. I have attached a copy of the initial information that was sent to creditors for your information.

We will retain your details on file and we contact you accordingly should the position change and there is a likely to be a return paid to creditors.

I am sorry that this is probably not the news you were hoping for, and if you have any queries then please feel free to come back to me.

Regards, 

Name

Joint Liquidator

Licensed in the United Kingdom to act as an insolvency practitioner
by the Insolvency Practitioners Association"

Is there anything I can do otherwise? 

I was made redundant last year, after 25 years with the bank I worked for, so I don't have the money to start from scratch with a new 8k driveway - assuming it's not even more expensive!

And I can't even claim under Section 75 as I didn't use my credit card for the purchase, I paid by bank transfer...

Thank you!

molerat

Unfortunately there is nothing you can do, if they are insolvent there is no money.

retiredbanker1

Is the warranty insurance based?

How did you pay? Any chance you paid some on a credit card??

Voyager2002

Since you paid by bank transfer, you have no redress. Had you made any payment towards the work on a credit card, you would have been protected.

Aylesbury_Duck

I'm afraid you're out of options.  You're not going to get money out of a liquidated business, and it sounds like the guarantee was offered by the company rather than by a trade body or third party insurance policy.

DullGreyGuy

ThranduilsQueen said:

Hi, I'm hoping for some help - my first post here. Not sure if I am allowed to name a company (I read the rules but I couldn't see anything clearly stating you can or cannot name a company), so I won't name them, just explain the situation.

In October 2021, we had a new resin driveway laid, for which we paid £8,395. We were given a Warranty Certificate for 10 years. Now, not even four years later, the driveway looks horrible and it's cracking all over the place, in one place it's a H&S hazard as it's on a step down from the back door.

To be honest, we had some issues with the company even during the process, with difficulties in responding to emails, frequent changes in the person who would contact us etc. 

As I suddenly couldn't get hold of them AT ALL this year, I checked Companies House only to discover that - the irony! - on my birthday this year the firm had gone into liquidation!

I emailed the liquidators and received the following message back:
"Afternoon, [name]

I refer to your e-mail below and apologise for the delay in coming back to you.

As you are aware, the company is in liquidation and had ceased trading prior to the liquidation commencing. Under the circumstances, the company is not in a position to be able to carry our any remedial works to your driveway. Unfortunately, it also means that the company is not able to honour the guarantee that you were given either.

To the extent that you have suffered a loss as a result of this, in relation to the rectification works that are required, this leaves you with an unsecured claim in the liquidation of the company. 

Unfortunately, based on information currently available, it is unlikely that there will be sufficient funds realised to allow a dividend to be paid to the unsecured creditors in this matter. I have attached a copy of the initial information that was sent to creditors for your information.

We will retain your details on file and we contact you accordingly should the position change and there is a likely to be a return paid to creditors.

I am sorry that this is probably not the news you were hoping for, and if you have any queries then please feel free to come back to me.

Regards, 

Name

Joint Liquidator

Licensed in the United Kingdom to act as an insolvency practitioner
by the Insolvency Practitioners Association"

Is there anything I can do otherwise? 

I was made redundant last year, after 25 years with the bank I worked for, so I don't have the money to start from scratch with a new 8k driveway - assuming it's not even more expensive!

And I can't even claim under Section 75 as I didn't use my credit card for the purchase, I paid by bank transfer...

Thank you!

There are no rules that prevent you from naming companies here, unless you are being excessive rather than just presenting facts.

Most companies that enter liquidation do so because they have less money than debts. There is a hierarchy of payments the liquidator has to follow as they generate cash by selling off assets. As an unsecured creditor you are at the very bottom of the list and so typically if you get a few percent of what you are owed you are doing well as many get nothing at all. 

Check the warranty, most are just the company themselves and so if they fold it goes with them but some are backed by an insurer and therefore out survive the company. 

Hopefully with 25 years service the redundancy was reasonable and whilst understandable that you dont want to pay out a chunk on a new driveway right now once you get back into gainful employment you may be in a position to look at a fix. 

Grumpy_chap

ThranduilsQueen said:

Hi, I'm hoping for some help - my first post here. Not sure if I am allowed to name a company (I read the rules but I couldn't see anything clearly stating you can or cannot name a company), so I won't name them, just explain the situation.

In October 2021, we had a new resin driveway laid, for which we paid £8,395. We were given a Warranty Certificate for 10 years. Now, not even four years later, the driveway looks horrible and it's cracking all over the place, in one place it's a H&S hazard as it's on a step down from the back door.

To be honest, we had some issues with the company even during the process, with difficulties in responding to emails, frequent changes in the person who would contact us etc. 

As I suddenly couldn't get hold of them AT ALL this year, I checked Companies House only to discover that - the irony! - on my birthday this year the firm had gone into liquidation!

I emailed the liquidators and received the following message back:
"Afternoon, [name]

I refer to your e-mail below and apologise for the delay in coming back to you.

As you are aware, the company is in liquidation and had ceased trading prior to the liquidation commencing. Under the circumstances, the company is not in a position to be able to carry our any remedial works to your driveway. Unfortunately, it also means that the company is not able to honour the guarantee that you were given either.

To the extent that you have suffered a loss as a result of this, in relation to the rectification works that are required, this leaves you with an unsecured claim in the liquidation of the company. 

Unfortunately, based on information currently available, it is unlikely that there will be sufficient funds realised to allow a dividend to be paid to the unsecured creditors in this matter. I have attached a copy of the initial information that was sent to creditors for your information.

We will retain your details on file and we contact you accordingly should the position change and there is a likely to be a return paid to creditors.

I am sorry that this is probably not the news you were hoping for, and if you have any queries then please feel free to come back to me.

Regards, 

Name

Joint Liquidator

Licensed in the United Kingdom to act as an insolvency practitioner
by the Insolvency Practitioners Association"

Is there anything I can do otherwise? 

I was made redundant last year, after 25 years with the bank I worked for, so I don't have the money to start from scratch with a new 8k driveway - assuming it's not even more expensive!

And I can't even claim under Section 75 as I didn't use my credit card for the purchase, I paid by bank transfer...

Thank you!

Well, the company has gone so there is nothing to pursue via them.

It is worth checking the warranty documentation to see whether that is from the original company or an insurance backed warranty.  If the latter, you may be able to claim on the warranty regardless of the original company having ceased trading.

pseudodox

The company who installed my resin drive in 2018 went under soon after, although they did reappear under a new name (more than once).  I had been given a 5 year insurance backed warranty & I checked it was still valid.  Which it was.  I have never had any issues however as despite the resin company being led by a bunch of chancers the subbies who did the work were brilliant (maybe helped by my providing brews & bacon butties!).  Sounds like you had a shoddy installation with insufficient preparation & layers of base stone & tarmac too thin.  You might be able to get it scraped back & re-surfaced, but obviously at more cost if you are not insured.

ThranduilsQueen

retiredbanker1 said:

Is the warranty insurance based?

How did you pay? Any chance you paid some on a credit card??

No, as I mentioned in the last sentence above, unfortunately I paid by bank transfer directly into their account. That was my first thought (as a former bank employee, that was the first thing I thought about!)... 

ThranduilsQueen

@Grumpy_chap - no such luck, it's their own warranty: 

ThranduilsQueen

Voyager2002 said:

Since you paid by bank transfer, you have no redress. Had you made any payment towards the work on a credit card, you would have been protected.

No, none. Both the deposit and the remainder were made by bank transfer, into the directors' accounts. Stupid, i know. Should have rang a bell then...