Frequently Asked Questions

I had a contract with a local business for them to build an extension on my house and have paid a deposit of £500 by credit card. The business has now gone bust so am I entitled to my deposit back?

If a limited company owes you the money you can register as a creditor with the appointed liquidators who will be administering the company's debts, however it cannot be guaranteed that you will receive the money owed to you. If the business is not a limited company but a private individual or partnership then the person(s) running the business are still liable to you even if they have stopped trading. However for any payment over 100 which is made on a credit card (not a charge card) then under the provisions of Section 75 of the Consumer Credit Act 1974, the credit card company is equally liable with the trader. You should therefore contact your credit card company and explain the situation and that you wish to make a claim against them.

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