1. ITV Report

HMV collapses: What are your rights?

The Citizens Advice Bureau offered advice to HMV customers who want to exchange items or have unused gift vouchers. Photo: PA Wire

Music chain HMV has stopped issuing or accepting gift cards after it was announced that Deloitte had been appointed as administrator.

But the Citizens Advice Bureau offered advice to customers with unused vouchers for the high street retail chain.

The advice service said that under consumer law customers who paid for products using a debit card may have the right to take action against a trader if there is a problem.

Consumers are advised that if they are unable to get a refund from the trader they may have the right to get a refund from the debit card provider if they take part in a chargeback scheme.

What is chargeback?

  • If you dispute a transaction that has been made on your debit card, you can ask your bank to ask the trader’s bank to reverse the transaction and refund the money back into your account.
  • Chargeback schemes may also cover items you have bought on your credit card which cost less than or up to £100 and which aren't covered by equal liability.

When would you use chargeback?

  • It is usually more straightforward and efficient to sort out the problem with the trader first but chargeback might be useful if you are unable to contact the trader, the trader has gone out of business or the trader has not responded to you.

How much can you claim?

  • There is usually no minimum or maximum limit but you can only claim but there is likely to be a time limit which you should check with your card provider.

What to do next?

  • Contact your card provider for details of how to make a chargeback claim.

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