Fears over lost cash as shoe firm Shudoo set to go bust

The company states it is suffering "trading difficulties" leaving many customers in fear they may have lost their cash.

Numerous threads have started on our forum over recent weeks where customers have complained of poor service and incomplete orders. It now appears the reason is the firm's troubles.

If it goes bust, as expected, customers will be reliant on administrators recovering funds, though it is rare those owed cash are paid anything like the full sum when a firm is insolvent.

The company says "a few hundred" orders are outstanding which are unlikely to be fulfilled.

A statement on the Shudoo's homepage says: "We regret to advise that due to trading difficulties the business is ceasing taking new orders and the directors are taking advice as to the financial position of the company.

"We are informed some orders cannot be completed due to problems which have arisen with warehousing and missing stock.

"We ask that no more returns are sent back. More information will follow. We apologise to all our customers."

What protection do you have?

If orders are unfulfilled, anyone who paid by credit card for items that cost over £100 is legally entitled to the money back from their credit card company.

Under Section 75 of the Consumer Credit Act, credit card lenders are jointly liable with retailers if something goes wrong.

If you don't fulfil that criteria but paid on any type of Mastercard or Visa (debit or credit card) both issuers operate a chargeback scheme where they get your cash back from the retailer's bank if you haven't had delivery.

This is not a legal requirement but a customer service promise. You must notify your card company within 120 days if claiming this way. Mastercard will only accept a chargeback for items over £10.

For full help on how to fight to get your money back including template letters and detailed guidance see the full Section 75 & Chargeback guide.

Further reading / Key links

Make them play fair: Consumer Rights, Section 75 RefundsCut costs: Cheap Online Shopping