Here are consumer rights explained when companies go through administration

Brits are being told of their rights on items bought from companies which have fallen into administration.

Following the collapse of Wilko, the consumer experts at NetVoucherCodes.co.uk are urging customers to be aware of their rights on purchases.

Retail giant Wilko fell into administration last month with thousands of job losses and stores closing across the UK.

Now, the experts want to ensure shoppers are aware of their rights on gift cards, warranty rules and return policies.

According to The Consumer Rights Act 2015, customers with faulty or broken items who want a return on their payment may be able to get a refund.

If the company ceases trading, consumers may be able to get a refund on their items by writing a claim to the administrator, but this doesn’t guarantee their money back.

John Stirzaker, online consumer expert at NetVoucherCodes.co.uk said: “We’re currently in a very turbulent economic time and with news of big retailers falling into administration, it’s bound to leave many confused about what to do with products they purchased from those particular stores.

“We want to reassure people that there are still ways to get their money back if they have an unfilled order or if they need to return a faulty item.

“The issue is that it’s not 100% guaranteed you’ll get your money back, so there is a chance you could be left out of pocket.

“That’s why it’s important to know what you’re entitled to and to put any claims in writing and send them directly to the administrator to try and get your money back.”

Here are your queries explained when a company goes into administration:

What to do with returns

Under The Consumer Rights Act 2015, customers can request a refund/return on faulty or broken products by writing a claim to the administrator. If you can’t find the appointed administrator, look at the business on Companies House to see who is registered.

While it doesn’t guarantee you’ll get a full refund, it’s the best possible solution to getting your money back.

Gift card queries

Once a company goes into administration, they no longer are required to accept gift cards. However they may become valid again if the company gets back on their feet or finds a buyer. Trying to get a refund on a gift card for a company under administration is not guaranteed as the policies in the original terms and conditions of the purchase may no longer apply.

If you purchased your gift card from an external retailer, get in touch to see if you can get a return – but don’t leave it too long.

What happens to the warranty

Products with a warranty are likely to still be covered if it’s protected with third-party insurance. If so, you can make a claim directly to the insurers if you need to get a refund. Make sure to do this before the company ceases trading.

Make sure to read the terms and conditions of a warranty to see if any rules are waived when the company in question goes into administration.

Unfilled orders

If you’ve made an order that hasn’t yet been fulfilled, you may still receive it if it’s in the warehouse. Contact customer service to find out the status of your order. If the company has only just gone into administration, a refund request may be possible, but you’ll have to follow the same process of writing to the administrator.

If you purchased using a credit card and the order was over £100, you may be able to get your money back by claiming the credit card provider. They may be entitled to give you a refund under section 75 of the Consumer Credit Act.