When a business announces that it will be closing its doors — or worse, shuts its doors overnight without warning — it can leave customers and employees anxious and uncertain about what comes next.
As a customer, you may have items or services you’ve paid for but haven’t received yet. You may have given a gift card for the business that hasn’t yet been redeemed or even have merchandise you’ve left for repair that is locked inside. These are common scenarios that have been reported to our BBB team over the years.
All may not be lost. Here are some tips from your BBB to help you toward a resolution:
— Collect receipts, proofs of purchase or an agreement, and other documents such as warranties and manuals. These materials will help you prepare for your request for a resolution.
— Check with the bank or credit card you used to make the purchase at the now-closed company. You may be able to dispute transactions due to failure to receive goods or services. Credit cards offer more consumer protections on purchases than debit cards, so it’s generally better to shop with a credit card, particularly for big-ticket items.
— Try to contact the company to complete the transaction or resolve the issue. Some closed companies will offer an email, website, new address or phone number to contact for more information. Check with BBB to see if we have information about the company, or search for the company on BBB.org.
If the business has a physical address, check for a notice posted with information on where to turn for help. BBB’s team will try to do the same and add this to our BBB profile for the company. Another great source can be the company’s website and social media accounts.
— If the company has not filed for bankruptcy, the business is still obligated to fulfill your order for goods, services or a refund. Closing a business doesn’t relieve the owner of that responsibility. Hopefully, there will be other remedies offered, but if not — while it can be time-consuming and expensive — a customer may take the company to court.
— If the business files for bankruptcy, customers who paid for goods or services they did not receive may qualify as unsecured creditors. You can check the bankruptcy filing to see whether you are eligible to submit a claim. Keep in mind that repayment is not guaranteed and often depends on the type of bankruptcy and available assets.
— For returns, if you have a warranty for an item you bought at the store, look into whether the manufacturer or the store issued the warranty. If the manufacturer issues the warranty, it will most likely honor it. When a company goes out of business, its warranties and services often die unless other agreements have been made.
— If you have unused gift cards for a closed business, bankruptcy filings will likely determine if and how they can be used or claimed. Sometimes competitor companies will step in and offer to either honor gift cards or offer a discount in hopes of attracting you as a new customer.
You can visit BBB.org to check BBB profiles for updates on closed companies and any other companies you’re considering doing business with.
SHRED DAY
You can protect your identity by safely destroying old documents and hard drives that contain sensitive personal or financial information. Bring them to BBB’s next Shred Day for free secure disposal.
Our spring event will be held 11 a.m.-noon April 11 in the parking lot of Coca-Cola Bottling Co., located at 2111 W. Shepherd Road in Chattanooga. (Exit 1A/Airport off Highway 153).
You can bring paper documents and hard drives for destruction, along with electronics for recycling. Unneeded medications can also be dropped off for safe disposal.
Please limit documents to three large trash bags per person and limit hard drives to four per person. For more information, please visit bbb.org/Chattanooga or call your BBB at 423-266-6144.
Thank you to our event partners Resource 1 Tier 3 Data Security, Hamilton County Coalition, River City Shredding, A-1 Barricades, Chattanooga Times Free Press, Coca-Cola Bottling Co., Cumulus Media Chattanooga, Double D Piping, First Horizon Bank, Local 3 News and Sunny 92.3.
Michele Mason is president of the Better Business Bureau in Chattanooga.