You might end up without the item you paid for or with unfinished work if a company or trader stops trading or goes out of business. There are several ways to try to get your money back or get the work done. However, there’s no guarantee you’ll get what you paid for.
If you’ve purchased through a sole trader
A sole trader (someone who runs their own business) or partnership that stops trading is responsible for work or items that have been paid for.
Call the company, visit their office or shop, or write to them to find out what’s happening. Explain what you’ve paid for and ask for the item you bought or a refund.
If you can’t reach the company
If you can’t get hold of a company or want to confirm that they’ve gone out of business (also called going bankrupt or going into administration or receivership), search for their name on:
the Companies House website if they’re a limited company (with the letters ‘Ltd’ or ‘Plc’ after their name)
the Insolvency Register if they’re an individual (a sole trader) or a partnership - search both the name of the person and their trading name
It can take a few weeks for information to appear on these websites.
If you booked a holiday
You can look for details of travel companies that have gone out of businesson ABTA’s website.
If your holiday booking is protected by ATOL, you should also check the list of ATOL protected travel companies that have gone out of business on the CAA website.
If you can’t find details of the company you booked with, you can contact the Citizens Advice consumer service.
If the company has gone out of business
Get details of the administrator or receiver - the person who is dealing with settling the trader’s debts. The names of those administrators will usually be on the website of the company that’s gone bust. You’ll need this information if you need to make a claim.
Dealing with a company that's gone out of business
If you bought an item in the shop before it closed, you don’t have an automatic right to get your money back if there’s nothing wrong with it.
You should check the shop’s policy on returns - if you can’t get in touch with the shop, check with the company that’s dealing with settling the trader’s debts.
If you haven't got the item or service you paid for, you can try to get your money back. This will depend on whether you paid for the item or work:
with a debit card
with a credit card
through a Buy Now Pay Later provider
You should alwaysregister a claim as a creditor on the GOV.UK website.Fill out the form with details of what you’re owed and send it to the administrator dealing with the trader’s debts.
If you've registered a claim
When you register a claim as a creditor, you’re added to a list of all the people the company owes money to. Other people, like banks, will get paid first so you might not get any money back.
Applying for a 'Section 75' claim
You can apply for a Section 75 claim if the following applies:
you paid with a credit card
the item or work cost more than £100
You can’t apply for a ‘Section 75 claim’ if you paid with a debit card or through a Buy Now Pay Later provider.
Asking for 'chargeback'
You can ask for chargeback from your bank or card provider if you paid:
with a debit card
with a credit card and you can't use Section 75
with a debit or credit card through a Buy Now Pay Later provider
Many bank staff don’t know about the chargeback scheme, so you might need to talk to a manager.
If you paid with a debit or credit card through a Buy Now Pay Later provider, you can still ask for chargeback - but your bank or credit provider might not agree to do it.
If you paid through a Buy Now Pay Later provider
If you bought something online or in a shop, you should first contact your Buy Now Pay Later provider to check their process and explain the situation.
If your Buy Now Pay Later provider doesn’t resolve the situation, you can ask for chargeback if you’ve paid with a credit or debit card. However, your bank or credit provider might not agree to do it.
You can’t apply for a section 75 claim.
Getting a faulty item repaired or replaced
If you’ve already got the item but it’s faulty, you can try to:
use the guarantee or warranty which came with the item to get repairs or a replacement
ask the administrator to get repairs or a replacement - there’s a small chance they’ll be able to help
Next Steps
If you’re not satisfied with how they deal with you, you could consider alternative dispute resolution or, as a last resort, going to court.
If you’re dealing with a company that stops trading
When a limited company stops trading, you can’t go to court. If it’s been bought by another company, try explaining what’s happened to the new owners.
Get help
Contact the Citizens Advice consumer serviceif you need more help - a trained adviser can give you advice over the phone or by online chat.
