Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to protect consumers who are owed goods or services from a company which has ceased trading without any apparent residual assets, particularly in cases where the registered owner has a record of previous companies dissolving in similar circumstances.

Where a business collapses with no assets there are limited opportunities for consumers to obtain refunds, but the Government has issued guidance to help Insolvency Practitioners to highlight the best options to consumers.

Where a consumer has paid by credit card and not received the goods or the services they have paid for there are extra protections where those goods cost between £100 and £30,000. In these cases, the consumer can claim back the total value of their prepayment by contacting their credit card issuing company. Consumers who purchased goods by debit card may also be able to claim through a chargeback scheme as long as they do this within a certain time period (normally 120 days). Further information on chargeback can be found at: http://www.theukcardsassociation.org.uk/individual/chargeback-for-credit-and-debit-card-purchases.asp.

In August 2018, the Government announced its intention to extend existing powers to investigate, disqualify and prosecute directors of insolvent companies to also cover former directors of dissolved companies. This includes instances of directors repeatedly dissolving companies and leaving behind debts and other liabilities – often to the detriment of small businesses, consumers and employees.