Chargebacks: a potential shield for customers impacted by insolvent retailers

What can I do if I didn't receive my purchase from an insolvent retailer?

The number of companies going into external administration has risen significantly over the last 12 months, and online retailers are among those most prevalent. When these businesses fail, customers with unfulfilled orders often receive little or no return on their claims. Accountants and lawyers, who are frequently called to guide their clients who have claims against insolvent entities, should be aware of alternative remedies such as chargebacks.

A chargeback is a reversal of a credit or debit card transaction initiated by the cardholder's issuing bank. It can be requested when goods or services paid for have not been received. If a company goes into liquidation before delivering products, a chargeback may offer the buyer a practical way to recover their money outside of the insolvency process; particularly since the return to unsecured creditors in smaller liquidations is