TV hell
Question
I purchased a television on a buy now pay later agreement. Within four months, it developed a fault but I cannot get it repaired because the retailer I bought it from has gone bust. Do I have to keep paying the credit company for a television that no longer works?
Answer
The answer will depend on whether the retailer is in receivership or liquidation. This is what Citizens Advice (CAB) has to say on the issue:
Receivership
"If there is a complaint about faulty goods or unsatisfactory services supplied by a company which has since gone into receivership, the client should complain to the receiver. The receiver may arrange to have the problem remedied, for example, s/he may agree to have the item repaired or the work remedied or completed. They may do this if there is money outstanding from the client or if the work required is inexpensive or if they are trying to maintain the goodwill of the company. However, if the receiver does not agree to do this, it will be difficult for the client to enforce their rights because if a company is in receivership it is unlikely that it can pay a client money for compensation.
If the business is sold by the receiver as a going concern, the receiver will no longer be responsible, and the client will have to negotiate with the new trader. The new trader takes on assets but not liabilities and the client cannot therefore enforce a guarantee or maintenance agreement against the new trader. A new owner may, however, agree to honour a guarantee or maintenance contract in order to maintain goodwill or if there is a strong chance that repeat business may take place."
Liquidation
"If the firm which supplied faulty goods or unsatisfactory services has gone into liquidation, a client cannot force the liquidator to resolve the problem. The client should make a claim to the liquidator but their entitlement to financial compensation for the breach of contract cannot be met unless assets left after the debts to priority creditors have been met. The company's trade association may have a bonding scheme which covers this situation, for example, the Association of British Travel Agents repatriates stranded clients if a travel agency goes into liquidation."
If you aren't sure if the company you're dealing with has gone into receivership or liquidation you may be able to find out from your local Trading Standards or the Official Receiver for your area.
As you have some kind of credit agreement for your TV you may find that the credit company is as equally liable as the retailer. Whether this is the case or not will be outlined in the credit agreement. To help you work this out it would be a good idea to take your agreement to your local Citizen's Advice Bureau (CAB) or Trading Standards and seek their advice.
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Question answered by CAB
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