# Any right to a refund of deposit if company goes into liquidation?



## zita3 (6 Jan 2010)

I was promised a 3 week delivery time upon ordering a door from a Dublin firm and 8 weeks later, depite repeatedy chasing them, I am no nearer to getting it delivered.  I was required to hand over a deposit of 700 euro on order which I paid by cc.  I am starting to get worried that they may be in financial trouble and may disappear before I get the door.  Do I have any entitlement to a refund if they do go into recievership or liquidation?  

Do you have any further protection by using a CC rather than cash or is this irrelevant?


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## mercman (6 Jan 2010)

It is very relevant. Have you asked for your deposit to be returned ? Try and if theyt refuse contact the CC company.


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## jack2009 (6 Jan 2010)

You have a right to a refund in the company goes into liquidation, however you will be an unsecured creditor and unlikely to be paid.

If you paid by credit card and do not receive your goods you may be covered to seek compensation from the credit card company.  If you paid by credit card contact them and explain that you have not received goods as I think you can claim this refund if the goods are not delievered within 8 weeks but these rules may have changed!


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## MandaC (7 Jan 2010)

There is a fair few threads already on about refunds by CC.  Certainly contact your credit card company in writing stating that you will not receive the goods and want to initiate a chargeback.

Actually, I would clarify the position with the door company first - put your request in writing - I always recommend registered letter.


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## Liquidator (12 Mar 2010)

You cannot get a Direct refund through the company as that will be prefering yourself to other creditors which is ileagal.  As previously posted you would be an unsecure Creditor and would fall behind employees and the rev for the last 12 months so would be unlikely to recieve a dividend.


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## MandaC (13 Mar 2010)

Liquidator said:


> You cannot get a Direct refund through the company as that will be prefering yourself to other creditors which is ileagal.  As previously posted you would be an unsecure Creditor and would fall behind employees and the rev for the last 12 months so would be unlikely to recieve a dividend.



Why would you bother going through the process of being an unsecured creditor if you were able to get your refund under the terms of your credit card.  

It does not make sense.


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## Joey99 (18 Mar 2010)

Consider yourself fortunate to have paid by CC as you have a better than average chance of getting reimbursed by the card company if the supplier goes bust. 

In these days and times everyone should be wary about paying any cash / cheque deposit more than they can afford to lose and almost certainly never more than 10%. 

Ask yourself the question, if creditworthy businesses can get at least 30 (and usually more) days credit (from time of delivery) from their suppliers, why would they need you to pay so much upfront? They order the door from their suppliers and take delivery. Within a few days they should be with you to fit the door and you pay 100% cash on delivery. They take your money and use it to pay their supplier and themselves. 

The retailer's deposit should only be enough to protect him if you change your mind after he's taken delivery of your materials (in which case you can quite fairly kiss your deposit goodbye) and he has to sell to someone else for less.


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