Challenging times: protecting yourself as a customer

Here are a few steps to take to protect yourself as a customer, by Moore Stephens.

If the forecasts are to be believed, UK businesses face challenging times in 2018. Among the casualties of 2017 were such household names as Monarch Airlines, Greenwoods and Jaegar. 

And with ever-increasing pressure on household budgets, it’s essential that customers take whatever steps they can to ensure that they don’t get caught in the aftermath of a company administration or liquidation.

There are several ways that customers can protect themselves when making a significant purchase:

  • Make payment by credit card (remembering to pay in full when the statement is received to avoid incurring interest charges) – under the terms of the Consumer Credit Act, credit cards must provide protection for purchases above £100 and below £30,000.
  • Specific insurance is available for significant purchases, such as those associated with weddings.
  • Be wary if payment requests are for cash – this may be an indication that the shop or merchant is having cash flow difficulties.
  • If payment is made by cash, ensure that you are given a receipt or proof of purchase.
  • If you are unfortunate enough to become a creditor in a bankruptcy or liquidation, retain all purchase documentation until the case is closed – you may be asked to prove your claim if a dividend is declared, and your claim may be rejected if you can’t prove that you have paid.

About the author

Neil Dingley is restructuring and insolvency partner at Moore Stephens.