This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/money/2016/apr/25/bhs-collapse-consumers-guide-retailer-administration

The article has changed 3 times. There is an RSS feed of changes available.

Version 1 Version 2
BHS collapse – a consumers' guide BHS collapse – a consumers' guide
(about 3 hours later)
As BHS moves towards administration, the consumer group Which? has advised customers with vouchers to spend them “as quickly as possible”, and says consumers need to be aware of their rights if a retailer fails. Here’s a short guide. On Monday, following its collapse into administration, BHS said it would honour gift vouchers at 50% of their face value. Earlier the consumer group Which? advised customers with vouchers to spend them “as quickly as possible”, and said consumers needed to be aware of their rights if a retailer fails. Here’s a short guide.
Does a retailer have to accept vouchers?Does a retailer have to accept vouchers?
No. Previously we have seen administrators say they would not take vouchers for a failed company. When Republic was taken over by Sports Direct around 78,000 people were left unable to spend vouchers they had bought or been given, and after HMV’s collapse its administrators, Deloitte, said the same. Deloitte eventually relented, but in many cases shoppers simply have to join the queue of creditors and make a claim, and are unlikely to get any of their cash back that way. No. BHS shoppers are better off than those who held vouchers for some firms which have previously gone into administration.
Andrew Tate, vice-president of insolvency experts R3, says: “Administrators must make their decisions regarding accepting gift vouchers on a commercial basis. On the one hand, accepting vouchers could lose the business more money; on the other, not accepting vouchers could hurt the relationship between the retailer and its customers.” He says the Law Commission is currently looking at the issue of gift vouchers and deposits in insolvencies, which should clear up some uncertainty for consumers. When Republic was taken over by Sports Direct around 78,000 people were left unable to spend vouchers they had bought or been given, and after HMV’s collapse its administrators, Deloitte, said the same. Deloitte eventually relented, but in many cases shoppers simply have to join the queue of creditors and make a claim, and are unlikely to get any of their cash back that way.
Andrew Tate, vice-president of insolvency experts R3, says: “Administrators must make their decisions regarding accepting gift vouchers on a commercial basis. On the one hand, accepting vouchers could lose the business more money; on the other, not accepting vouchers could hurt the relationship between the retailer and its customers.” He says the Law Commission is looking at the issue of gift vouchers and deposits in insolvencies, which should clear up some uncertainty for consumers in the future.
The same is true if you have a credit note from a retailer, perhaps for goods you have taken back.The same is true if you have a credit note from a retailer, perhaps for goods you have taken back.
How do I make a claim?How do I make a claim?
The administrator will publish details of where creditors need to write to on its website. You will need proof of what you bought and are claiming for – for example, an order number or vouchers. Be aware that you will be near the bottom of the list of people to pay out – the administrator will need to settle debts secured on property and pay employees before it begins to look at other creditors. The administrator should at some point publish details of where creditors need to write. You will need proof of what you bought and are claiming for – for example, an order number or vouchers. Be aware that you will be near the bottom of the list of people to pay out – the administrator will need to settle debts secured on property and pay employees before it begins to look at other creditors.
“The administrator has to look after all creditors interests according to a strict hierarchy set out in the law and unfortunately customers are just one of a number of creditors that a retailer has,” says Tate. “The administrator has to look after all creditors’ interests according to a strict hierarchy set out in the law, and unfortunately customers are just one of a number of creditors that a retailer has,” Tate says.
I ordered something online – will I get it?I ordered something online – will I get it?
It depends what stage the order is at. If it’s ready for dispatch the company might still be able to fulfil it. You should call and ask. This could depend on what stage the order is at. If it’s ready for dispatch the company should still be able to fulfil it. You should call and ask.
The administrators of BHS say the business will continue to trade as usual, and its website is still up and running. However, Which? warns: “Whenever a shop goes into administration we recommend you shop in-store as opposed to online because there’s a risk the goods won’t arrive if you shop online, especially if the financial situation worsens.”The administrators of BHS say the business will continue to trade as usual, and its website is still up and running. However, Which? warns: “Whenever a shop goes into administration we recommend you shop in-store as opposed to online because there’s a risk the goods won’t arrive if you shop online, especially if the financial situation worsens.”
What if it doesn’t arrive or something I’ve bought turns out to be faulty? What if my item doesn’t arrive or something I’ve bought turns out to be faulty?
If the order is not ready to send out and the firm won’t be able to provide it or a refund, or an item you bought from a store turns out to be faulty and needs replacing, you may be able to reclaim your money from your bank, depending on how you paid: If the order is not ready to send out and the firm won’t be able to provide it or a refund, or an item you bought from a store turns out to be faulty and needs replacing, you may be able to reclaim your money from your bank, depending on how you paid.
If you paid by credit card You are covered by section 75 of the Consumer Credit Act. This makes the credit provider jointly liable with the retailer for anything you buy, provided the item costs between £100 and £30,000. The protection covers undelivered goods and those that prove to be faulty, and you only need to have put the deposit on your card, not the whole cost.If you paid by credit card You are covered by section 75 of the Consumer Credit Act. This makes the credit provider jointly liable with the retailer for anything you buy, provided the item costs between £100 and £30,000. The protection covers undelivered goods and those that prove to be faulty, and you only need to have put the deposit on your card, not the whole cost.
Should you need to make a claim, Citizens Advice has a template letter you can download and send to your credit card provider.Should you need to make a claim, Citizens Advice has a template letter you can download and send to your credit card provider.
If you bought goods on a debit or charge card You may have some protection. Visa, MasterCard and American Express all offer a scheme called chargeback, which allows customers to claim back money spent on a debit or prepaid card if the goods do not arrive or are faulty, or where the retailer has gone bust. There are time limits for these claims, so you should act as soon as you can.If you bought goods on a debit or charge card You may have some protection. Visa, MasterCard and American Express all offer a scheme called chargeback, which allows customers to claim back money spent on a debit or prepaid card if the goods do not arrive or are faulty, or where the retailer has gone bust. There are time limits for these claims, so you should act as soon as you can.
Can I get a refund if I’ve changed my mind about something?
No. The retailer says it is not offering refunds if you take things back.