BBB advice on what to do if a company goes out of Business unexpectedly Released: Wednesday June 20, 2012 (Calgary, AB) - BBB Perma-link: http://www.gaycalgary.com/n571 [copy]

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As a result of difficult economic conditions over the last few years, the number of retailers closing their doors has increased, often leaving shoppers confused and wondering what will happen to purchases they've paid for but haven't received. The same applies in situations where warranties or unused gift cards are involved.

"A lot of Canadians buy online from stores in the U.S, but because of difficult economic times, some consumers don't always end up receiving their merchandise if the business closes," said Sandra Crozier-McKee, president and CEO of BBB Serving Southern Alberta and East Kootenays. "This has impacted Canadian businesses as well."

Your BBB provides advice for consumers regarding steps they can take if a retailer goes out of business.      

If a Company Closes, But Hasn't Officially Filed Bankruptcy

First, send the company a letter because their mail may still be forwarded. If possible physically go to their location to see if they left a message on the door for customers. Ask neighboring businesses if they have any information. Try to reach the owner. If you have merchandise in the store, contact the landlord to see if you can be given access to the company's facility. As a last resort, contact your local police.      

Warranties

The validity of any outstanding warranties varies depending on the facts. If a retailer goes out of business, the consumer may be able to rely on the manufacturer's warranty. If a manufacturer goes out of business, the consumer may be able to rely on a retailer warranty. Many extended warranties and service plans are provided and administered by third parties and are typically not affected by a retailer or manufacturer closing its doors.      

Bankruptcies

Customers who paid with credit cards may be able to dispute the charge with their credit card company to get their money back. Others who paid by debit, check or cash, will need to file a claim with the bankruptcy court administering the process.      

Unused Gift Cards

Consumers will need to check with the bankruptcy court administering the process to see if the courts decide if the business must honor gift cards. To avoid problems, Your BBB advises that consumers redeem gift cards as soon as possible.

Customers in these situations can also file complaints with the BBB ( http://www.calgary.bbb.org ) Depending upon the amount of the claim, small claims court is also an option.

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