Online Retailer Studio SAVED from Administration
STUDIO Retail Group was saved from administration after being taken over by Frasers Group – here’s what it means for customers.
The online retailer appointed administrators yesterday after warning last week that it was on the verge of collapse.
He stopped taking orders last Monday after failing to secure a £25m emergency loan to continue trading.
But Fraser Group, owned by retail tycoon Mike Ashley, saved the business from overthrow after buying it for £26.8million.
This means that 1,500 jobs have been saved under the agreement and the company will be able to resume operations.
But customers will want to know what will happen to orders or refunds due to them in the meantime.
Studio has allowed buyers to open credit accounts, so there are also questions about what to do if you still owe money.
We explain everything you need to know about your consumer rights while Studio has not yet resumed commercial activities.
What are my rights if I am waiting for an order?
Studio has previously confirmed that all open orders are stored in its warehouse.
Customers have complained that their orders are marked as “awaiting shipment” but have not been sent after several weeks.
The company said Studio Pay customers will be credited if they can’t submit their orders.
However, he did not say whether he would refund customers who paid in full at checkout.
If you don’t receive your items, you may be able to get a refund, depending on how you paid.
Buyers who paid with a credit card could get their money back under Section 75 of the Consumer Credit Act.
If what you bought costs more than £100, your credit card company must cover the refund.
Write to your card provider to ask for the total amount you paid. If your request is unsuccessful, you can ask the Financial Ombudsman Service to review your case.
You can also get a refund if you paid with a Visa or Mastercard debit card.
This is called a “chargeback” and you must submit a claim within 120 days of your purchase.
It’s not a legal requirement, but it’s worth going if you’ve been left out.
Customers who paid through a third party should contact that payment provider first.
For example, Paypal will allow you to open a dispute within 180 days of a purchase.
“My advice to anyone who is waiting for orders that haven’t been dispatched is to contact your card provider,” Martyn James told claims website Resolver.
“Cut your losses and rebill the money if you can.
“The big takeaway here is that speed is key,” he told The Sun.
“Do not delay, contact your bank or card provider.
“The main thing is to say the company has gone into administration. Sometimes they ask you to sign a document, so say you’re happy to do that, but ask if they can start billing again now. “
What are my rights if I am expecting a refund?
Many customers are already waiting for a refund after returning goods.
The company says it’s still processing returns, but customers report waiting months after returning items for refunds.
We spoke to a mum who has been waiting for an £80 refund for over a month after returning a faulty electric scooter.
Studio said its customer service teams are still available by email and by phone on 0371 200 0378.
However, the line is likely to be very busy, so you might wait a while for a response.
We asked Teneo what customers who are waiting for a refund should do.
We will update this article when we have more information.
What are my rights if I have a Studio Retail credit account?
If you owe money on a Studio Retail credit account, the company’s final advice is that you should always make payments.
Otherwise, you could be hit with a late payment fee of £12.
However, some customers have reported having trouble accessing their accounts to make payments.
We asked Teneo for more clarity on what indebted customers should do next.
If you are concerned you should contact Citizens Advice for free assistance.
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