Inactive CC transaction

Bargain_Rzl

Hope this is the right board for this question. It isn't exactly a question about money-saving but I hope somebody can put my mind at rest.

In April I placed an order with an online company for an electrical product which was not due to be released until June. I "paid" for this with my Visa credit card. The inverted commas are because the stock never arrived from the company's supplier, so (1) I didn't receive the goods, and (2) my card was never debited.

Since placing this order, two things have happened.

(1) My credit card was stolen, so the card was stopped and I now have one with a new number;
(2) More importantly, the company from whom I ordered the goods has gone bust.

Now, I only found out number (2) because I was trying to cancel the order (after all, it's been six months!) and as soon as I discovered that the company was in administration, I contacted my card issuer to check that this transaction would not go through (my main concern being that if the company were in some way bought out, they might re-activate outstanding orders). I was told by the bank that that could not happen.

Can anybody confirm that this advice was correct? I just want to know that the order is now genuinely null and void, as I've now been in touch with a rival supplier to purchase what I wanted in the first place! It cost me an extra £30, but at least I might get it this time!

Reaper

You should be ok. The company has to deliver goods in a reasonable time. 6 months late is not reasonable even if they were bought out and tried to continue trading. You have plenty of reason to consider them in breach of contract.

So go ahead and order the goods from elsewhere and reclaim the money lost from your credit card company.

Bargain_Rzl

Thanks. As I say, I haven't actually lost any money (they never charged me). The main reason for my confusion was that after my card got stolen and I got the new card, I phoned the company (then still in business) and asked if I needed to amend the CC details in order for them to charge me. The customer service operator told me that it ought to go through anyway as the money would have been "reserved" against my old card number when I originally gave my details for the transaction. I was a little dubious about this (I know this happens in the first instance, but I'm guessing the "reservation" status probably expires after a few days?) but of course it leaves me wondering whether the amount COULD still be charged to my card...

Reaper

It's unlikely your credit card company will accept a demand for payment on your closed account. Even if they do you are safe as if you ever receive the goods you are entitled to send them back and get a refund if you do so within 7 days of receiving them under the Distance Selling Regulations. Not only that but The Sale of Goods Act, 1979 says that a retailer must deliver to you 'within a reasonable time', and although it doesn't define how long that is 6 months is certainly not reasonable.

So in summary it is extremely unlikely they will be able to reactivate your order, and even if they do you can return it and get your money back.