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Bristol Post
Bristol Post
Entertainment
Emma Munbodh & Jasper King

Mothercare administration: What are your rights on gift cards refunds and exchanges?

Mothercare has officially collapsed, just weeks before Christmas.

The closure affects Bristol's store at Eastgate Retail Park.

The chain announced earlier this week it will be selling its UK arm and will be handed over to consultancy giant Pricewaterhouse Coopers.

Mothercare customers now face the problem of being left out of pocket over gift cards and refunds that may cease to be valid, Mirror Online reports.

This could also include website orders - which would leave thousands of customers with outstanding purchases potentially out of pocket.

Salman Haqqi is a personal finance expert from money.co.uk.

He said: "There's no announcement as to whether or not Mothercare will honour gift vouchers and refunds.

"It isn't illegal for them to refuse refunds so if you were hoping to return any goods you may be in for a lengthy battle to get your money back."

Shoppers are being warned to pay on card as opposed to cash if they're hoping to take advantage of the possible closing down sales.

This is because you've got no rights to recall your money if you pay this way.

Mothercare is closing branches across the UK (Kate Woolhouse)

Refunds and exchanges are still being accepted in all stores .

However, this could all potentially change now Mothercare has folded.

You can't ever guarantee whether a firm will go bust; but here are some tips on what to do if a company collapses with your money:

If you paid by credit card

As a customer you have statutory protection if you pay for goods using a credit card.

The Consumer Credit Act states you can claim your money back from your card provider for anything that costs between £100 and less than £30,000.

Make sure you know your rights when claiming refunds back (Hannah Baker/Business)

If you paid by debit card

Card providers run a scheme called 'chargeback' which means you might be able to recall your money if there's a problem. But, this isn't a legal right unlike when you pay with a credit card.

Using electronic money services like PayPal also give you some rights, but read the disputes resolution first.

Chargeback

You can call your bank to ask them to 'charge back' your money. Explain this is urgent and that the business is going into administration.

Chargeback is an agreement between card providers and can be used on payments made by debit or credit card. Your bank should try and get cash back to you as soon as possible.

If administrators have closed the business's accounts, it may be too late.

The main advice is to act quickly. If a firm goes bust it may be too late.

For the latest news in and around Bristol, visit and bookmark  Bristol Live's homepage.

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