We’ve had Comet, Jessops HMV and now Blockbusters, all gone into administration within a matter of weeks.

Not only does this truly suck for the thousands of staff facing unemployment, but it also puts us consumers in a tough place. That is once we’ve finished picking the discounted flesh from the bones.

What happens to our gift cards and our rights to return goods?

EDIT: HMV are now accepting gift vouchers

Well, we’ve done a bit of research to let you know what your rights are…

Can I return an item if it’s faulty?

You may remember that we’ve talked about returning faulty goods before and that under the Sales of Goods Act the item you purchased should be “satisfactory quality, as described, fit for purpose and last a reasonable length of time.”

However, HMV has announced that it will not be accepting faulty items back. Which surprisingly is legal, this is because the company is no longer in the same form as it was, which makes all contracts void.

The administrators, Deloittes, may change their mind on this, as Comet did, but you’ll need to contact them. Contact details are available on the HMV website, here.

What about if I’ve changed my mind

You have even less rights basically. Even before the suits came in, you actually don’t have any legal right to a refund if you change your mind, most of the retaillers are just really generous in offering exchanges or credit vouchers. You’re best of trying to flog it by some other means.

Can I used giftcards still?

Nope. Deloittes have said they are not accepting HMV giftcards even though shops are still trading. Although this may change.

However, Blockbusters have announced that they are still accepting giftcards.

What if I paid using a credit card, can I get a refund?

Potentially. Under Section 75 of the Consumer Credit Act card companies are just as liable as the retailer. As such if the item you purchased on your credit card is over £100 then you can claim via your card provider.

That being said, this hasn’t really been tested when claiming back on vouchers.

It has, however, been tested on faulty items or undelivered items so if this is applicable to you and you spent over £100 on your credit card you can reclaim the money via Section 75.

What about if it is under £100 or I used my debit card?

Again, potentially. You may be able to get your money back using ‘chargeback’ within 120 days of purchase.

Firstly, you’ll need to contact your bank or card provider to dispute the transaction, which gets things moving and potentially put your complaint in writing. MoneySavingExpert.com has a template letter here.

This method is little known and not nearly as definitive as the Section 75, this is because the bank has no legal responsibility.

But hey, it’s worth a shot, especially if the item you purchased is faulty or failed to turn up as expected.

What about warranties?

Warranties and longer term guarantees are usually under written by a separate company and as such the closure of the retailer you purchased the item from shouldn’t be affected. As always, your best off checking the paperwork to find out for sure.

If I paid using cash?

Nothing unfortunately. While you are technically classed as one of the businesses creditors, your way down on the list of priorities, which means you’re likely to receive nothing.

What if I bought it from another store like a supermarket?

Many places sell gifts cards now for other retailers. However, if the retailers go bust it is very unlikely that the store of purchase is likely to give you a refund.

What about at Waterstones?

While HMV used to own Waterstones, they are now separate companies. Which means your HMV voucher is as likely to be accepted as your coupon for free hugs.

Can I do anything with the gift voucher?

You’re best bet is to hold tight. Chances are that Deloittes will back track and present some kind of compromise.

That being said, musicgiftsuk.com, who supply HMV, have announced that they will accept the giftcards to half of their face value. However, you’ll be expected to send them the voucher.

Here is what they say “As an indirect supplier to HMV we understand the feeling of the potential loss.  We would like to offer the loyal customers of HMV a chance to redeem their Vouchers/Gift Cards for their full face value as a discount of up to 50% of any purchases made through our website.

As an example if you had a £10 Voucher you would need to spend a minimum of £20 on the website to get the full £10 value of the Voucher”

They’re only running this offer until the 31^st of January.

All in all it’s a fairly sucky position for all involved. But what ever you do, don’t steal from HMV. It sounds fairly obvious, but I’ve seen a tonne of comments asking what would happen if they were to just walk out with items to the value of their giftcard. You know what happens? A forthcoming arrest. It is still illegal despite your feelings of injustice.

The post When Businesses Go Bust: Your Rights appeared first on Your Saving Angels.