Comet to go into administration

02 Nov 2012

With the news that Comet is about to be put into administration, shoppers may well be worried about items they have purchased if they go wrong or if they have yet to be delivered.

The stores are still open for business, but the website is not longer operative.

So what are your rights if you have purchased goods from Comet?

If the goods become faulty

If you paid by cash or cheque, you will only be able to make a claim against the administrator but there is no guarantee that you will get your money back as you may be last in a long list of creditors.

If you paid by credit card or credit agreement and the goods cost more than £100 (but not more than £30,000) then the finance provider will be jointly and severally liable with Comet for any claim - the amount of your claim is not limited to the amount you paid if you only paid a deposit using credit, even if the deposit was less than £100.  You will therefore need to claim against the finance provider - this does not mean they will automatically settle any claim and you may still have to prove your right to any compensation

If you paid by any other type of card then you may be able to claim against the card provider under a scheme called Charge Back, run by Visa, MasterCard and American Express (not chargecards) however, this is not an automatic right, and is subject to time limits.

What if I have paid for goods that are yet to arrive?

Contact the shop you purchased the goods to find out what stage your order is at.  If it is clear that they will not be providing your goods then your rights will be as set out above.  If the goods are at the shop and are clearly marked as your goods and you have already paid, then you can argue that the goods are yours and should be given to you.  If that happens, get in touch with the administrator immediately and tell them your position.

My local Comet is slashing its prices - how can i protect my purchases?

If the goods are over £100 then consider paying, even in part, with a credit card.  If they do go into administration then any future claim you may have can be pursued against the card provider under Section 75 of the Consumer Credit Act 1974

Can I still redeem my gift vouchers?

It would be wise to use the vouchers now - if Comet do go into administration it is highly unlikely you will be able redeem then later.

If the vouchers were paid for by you using a credit card and cost more than £100 then you may claim against your card provider under Section 75 of the Consumer Credit Act 1974

My goods came with a guarantee - can I still enforce it?

Yes as the manufacturer's guarantee can be enforced directly against the manufacturer.

If you purchased additional guarantees then these are usually underwritten by a third party so you should follow the claims procedure set out in the guarantee documents.