Furniture store in administration

BlissC

Hi,

A couple of months ago I bought a rise and recline chair from a local furniture store costing just over £1,300, paying in full on my debit card (I would normally have used my credit card, but couldn't remember my credit card PIN, so foolishly just used my debit card instead). I was advised that delivery would be 6-8 weeks. Just as it got to 8 weeks, a couple of weeks ago, I got a call from the company to say that my chair hadn't been made and that they were going out of business and would call me the following week about getting my money back.

This last Tuesday they called and said they'd met with the insolvency firm the previous day, and that I'd be receiving a letter from them explaining how to claim a refund. The letter arrived yesterday, and of course is written entirely in legalese, with a number of forms to fill in (I'm going to go and see my local Law Centre on Monday). Most of it is about submitting proof that you're a creditor and convening a meeting of creditors. In the information given on the financial state of the company it says it's unlikely that there will be sufficient funds available for a distribution of assets to creditors, even after selling the company's existing stock on a forced-sale basis.

I understand that I can put a Chargeback claim in with my bank as I paid by credit card. My question is, can I approach my bank about Chargeback straight away, or do I need to file my claim with the insolvency company and attend the creditors meeting first?

Thanks,

RT

SiliconChip

You say in your final paragraph that you paid by credit card, I assume that's just a typo and that you meant to repeat your earlier statement that you paid by debit card? It's a shame you didn't use your credit card as you'd be in a stronger position, but you should still be able to do a chargeback. I'm happy to be contradicted by those with greater knowledge of the process but I'd say get your claim started with your card issuer now, if they say you need to wait then I'd suggest you come back here for more help.

Woodstok2000

Yes, start the process now via your bank.

https://www.moneysavingexpert.com/reclaim/visa-mastercard-chargeback/

Grumpy_chap

Submit the chargeback claim now - via your bank.

I assume the type of chair you want was not on display and you can't buy a knock-down one from the fire-sale? Either way, I'd keep that separate from the chargeback.

born_again

If you have proof they are not going to supply the chair you can start with bank now, if not you will have to wait till day after it was due for delivery.

Forget creditor meeting, as you would be looking at pennies in the pound. Chargeback will get the full amount.

BlissC

Thanks guys!

@SiliconChip - yes, 'credit card' in the last paragraph was a typo. Normally I'd use my credit card, but unfortunately couldn't remember my credit card PIN on the day. Lesson learned!

@Grumpy_chap - yes, unfortunately it's not an off the shelf thing as I need specific features due to disability

@born_again - They're definitely not going to supply the chair (I didn't have a confirmed delivery date). They said when they first contacted me to say they were going out of business that the chair hadn't been made. They order from the manufacturer, and hadn't been paying their suppliers. The showroom's now closed.

I've fortunately been able to find another supplier online who can order from the same manufacturer - I had the detailed specifications on my receipt from the first place, so I was able to order online (and I made sure to use my credit card this time!). So far, the second company have been wonderful - they emailed me the VAT exemption form I needed to fill in to get VAT taken off the price within 10 minutes of me placing the order, and when I needed to change a couple of the specs, less than 5 minutes after I emailed the details they phoned to confirm. When I told them what happened with the first company they said they'd put it through as an urgent order, and delivery should be within 3-4 weeks rather than the 6-8 weeks the first company told me, and I have a named contact if I have any problems.

I'll go and see my bank and start the Chargeback process tomorrow.

Thanks again for your advice!