Four high street retailers go into administration in one dayCustomers are urged to contact their card issuers for refunds

26 June 2013


Customers of four high street retailers are being advised to contact their card issuers to seek refunds after they all appointed administrators in one day. 

Yesterday Internacionale, ModelZone and Ark filed notices to appoint administrators, while furniture retailer Dwell confirmed Duff & Phelps as administrators following the closure of its 23 stores last week.

Clothing group Internacionale, which has almost 150 stores, has filed a notice to appoint Ernst & Young as administrator. 

ModelZone, which has 47 stores nationwide, has appointed Deloitte. Begbies Traynor has been appointed as administrator for Ark and its 17 stores.

If you've been affected by any of these companies going into administration read our guide on what to do when a retailer fails

Credit card purchases

Those who have made purchases but not received their goods will need to make a claim to the administrator to get their money back.

However, purchases made by credit card have additional protection. Under Section 75 of the Consumer Credit Act, credit card providers are jointly liable with the retailer if something goes wrong.

This means you can make a claim to your credit card company if you haven't received your goods. In the case of Dwell, where it has said orders won't be honoured, you can put in a claim immediately to your credit card company. 

Goods costing more than £100 but not more than £30,000 and paid on credit card are protected under Section 75. Purchases where only the deposit has been paid by card are also covered for the full amount.  

Use our guide to help you reclaim money.

Debit card purchases

If you've paid by debit card, you can use the chargeback scheme to reclaim money. Chargeback is not enshrined in law but instead is part of what's known as Scheme Rules. 

This means you can ask your bank to try and claw back the money you paid on debit card if you haven't received your goods. You can use our template letter to help you make a chargeback claim

Dwell deposits at risk

Around £1million of customer’s deposits are at risk from the collapse of Dwell, who said it would not be honouring purchases.

John Whitfield, joint administrator, said: 'We are aware that there are a large number of customers who have placed orders with the company and have already paid deposits. 

'Those customers who have bought goods and have outstanding orders should contact their card issuer in the first instance.

'Other customers who have not paid by credit card will be unsecured creditors and should notify Duff & Phelps in writing at its Birmingham office.'

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