What do I do if a company has gone out of business?
Where to claim when the seller no longer exists — card protections, the administrator, and which route to try first.
- Difficulty
- beginner
- Time
- 30 min
- Read
- 2 min
Short answer
Claim through your card provider rather than the company. Credit card purchases over £100 usually give you a claim against the card issuer itself, and debit or credit card chargeback can cover the rest. Claiming from an administrator rarely returns much.
When a company fails, unsecured customers are near the back of the queue and typically recover little or nothing. The practical route is almost always your payment provider, because their liability is separate from the company's solvency.
Step by step
- Stop any further payments immediately.Cancel direct debits and recurring card payments. Payments can continue to be taken during administration and getting them back is harder than stopping them.
- Gather the evidence now.Order confirmations, receipts, emails, delivery promises, the amount and the date. Websites disappear quickly once a company fails.
- If you paid by credit card and it was over £100, claim from the issuer.For credit purchases between roughly £100 and £30,000, the card provider is generally jointly liable with the retailer. This is the strongest route and it does not depend on the company existing.
- Otherwise ask your bank about chargeback.Available on debit cards and on credit purchases under £100. It is a card scheme process rather than a legal right, and it has time limits — usually around 120 days, so act quickly.
- Check whether the service had its own protection scheme.Travel, energy and some financial services have industry arrangements that transfer or protect customers when a provider fails.
- Register with the administrator anyway.Their details are published. Expect little, but registering costs nothing and occasionally there is a distribution.
- If goods were ordered but not delivered, say so explicitly.Non-delivery is a clearer claim than dissatisfaction. Make the basis of the claim precise when you contact the card provider.
Tips
- Paying for anything significant by credit card buys this protection for free. It is the single best reason to use one for large purchases even if you clear it immediately.
- Act on chargeback quickly — the time limits are far shorter than most people expect and start from the transaction or the promised delivery date.
- Gift vouchers for a failed company are usually worth very little. Use them immediately if trading continues during administration.
Common mistakes
- Waiting for the administrator to contact you — They have no obligation to chase customers, and the card routes have deadlines that expire while you wait.
- Only claiming from the company — It is insolvent. The claim that actually pays is against the card provider, and it is independent of the company's finances.
Questions people ask
Will I get my money back if a company goes bust?
Often yes, through your card provider rather than the company. Credit card purchases over £100 have the strongest protection; chargeback covers many other cases.
How long do I have to claim?
Chargeback is typically around 120 days from the transaction or expected delivery. Credit card joint liability claims have longer, but there is no advantage in delaying.