'I paid for an experience day, but the company went out of business': your refund rights when companies go bust
Tali writes about scams and consumer rights for Which? delving into fraud, technology and consumer rights topics to keep readers safe and empowered.
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Dear Which?,
I recently booked a classic car experience via the company Five Star Days.
The experience was to be provided by Great Driving Days, but when we arrived its office was closed.
I spoke to a tradesperson in the neighbouring building who told me that some of the cars had mechanical problems and were unavailable. I contacted Five Star Days, but was told that as more than 30 days had passed since my original booking, I must instead contact Great Driving Days.
When I went to do so, it emerged that Great Driving Days had ceased operating and had been placed into liquidation. I got back in touch with Five Star Days and was offered an alternative experience up to the value of my original booking (£94) or the option to pay the difference for a more expensive experience.
I can’t find anything I’m interested in at a similar price. Is there any way I can get a refund?
Sarah (name changed)
Put to Rights
Tali Ramsey, consumer rights expert at Which?, says:
Under the Consumer Rights Act 2015, if a service you’ve paid for doesn’t take place, you are entitled to rebook at no additional charge. If this isn’t possible within a reasonable amount of time, you can claim some or all of your money back.
We contacted Five Star Days on your behalf. It agreed to provide you with a £94 gift card with Virgin Experience Days, a larger experience provider, which you’ve accepted.
Thankfully, your situation has been resolved, but getting a refund when a company has gone bust can be tricky. First, customers should submit a claim to the company’s administrator - but there’s no guarantee of getting the money back.
If you’re unsuccessful, you can try making a claim with your bank. If you paid by debit or credit card, you can ask your provider to reverse the transaction by making a chargeback claim.
You have enhanced rights under Section 75 of the Consumer Credit Act 1974 if you paid for a service costing more than £100 by credit card. If you’ve paid via PayPal, you can open a dispute under its Buyer Protection scheme online or via its app.
Get in touch. If you've got a consumer rights problem you need put right email us at yourstory@which.co.uk
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