Dealer in liquidation. What can I do?

Last year I bought new bike from a reputable dealer. I was attracted to the deal because they promised a lifetime warranty and MOTs on all new motorcycles over a certain price.

The bike is no longer working properly and I have just learned that the dealer has gone into liquidation. Have I any legal recourse as I would have probably not committed to the deal but for the promised warranty?

Ben, Email

Answer

When companies go into liquidation many of their innocent customers can end-up short-changed. You do, however, have some options to explore.

If there is a fault with the motorcycle, and you have registered it correctly, then you may be able to use the manufacturer’s guarantee to get a repair or a refund.

You can also register a claim, as a creditor, with the administrators in bankruptcy. You will be added to a list of all the people the company owes money to. As you will be an unsecured creditor other organisations like banks will get paid first, so unfortunately there is a high chance you will get very little if any money back.

Finally, if you purchased your motorcycle with a credit card then Section 75 of the Consumer Credit Act 1974 may provide you with the right to claim a refund or damages from your credit card provider, rather than the dealer.