Most people pay for a pram in advance, often weeks before it is delivered, and sometimes as a deposit on a pre-order. If the retailer stops trading in that gap, the money can be hard to recover. This guide sets out what Citizens Advice and GOV.UK say a customer can do when a company goes out of business after taking payment, and how the payment method changes the picture. The consumer-credit and card points apply across the UK. The GOV.UK creditor process described is for England, Wales and Northern Ireland, and Scotland has its own system. It is general information, not legal or financial advice.
First steps
Citizens Advice lists these first steps for a customer who has paid a company that has stopped trading:
- contact the company, by phone, letter or a visit, to ask about the payment;
- check whether it has closed by searching Companies House for limited companies, or the insolvency register for sole traders and partnerships;
- get the details of the administrator from the company’s website; and
- register as a creditor on GOV.UK, giving details of the amount owed.
Paying by credit card: Section 75
Citizens Advice says a claim under Section 75 of the Consumer Credit Act 1974 is available for purchases over £100 paid for by credit card. It is not available if the payment was made by debit card. For a pram, that threshold is often exceeded, and the card company can be asked to refund an order that was never delivered, as explained in the site’s guide to Section 75 and chargeback for a pushchair. GOV.UK’s creditor guidance adds that a customer who gets a full refund from a card company cannot also claim through the insolvency, so the card route should be tried first.
Debit cards and chargeback
Citizens Advice says that a debit card payment does not qualify for a Section 75 claim, but the customer may ask the bank or card provider for a chargeback. Chargeback is a card-scheme process rather than a legal right, and Citizens Advice notes that success is not guaranteed and that a bank may decline; it suggests that asking for a manager may help.
Buy now, pay later
For buy now, pay later purchases made before 15 July 2026, Citizens Advice says Section 75 cannot be used, although a customer can attempt a chargeback on the credit card that funds the account. The site’s guide to buy now pay later for a pram explains what regulation from that date changes, so anyone who paid by BNPL should check which side of the date their purchase falls.
Registering as a creditor
GOV.UK says that where a company is in insolvency, a customer who paid for goods that were not delivered should register as a creditor by contacting the official receiver or the insolvency practitioner dealing with the case. In a bankruptcy or liquidation, GOV.UK says that a claim for more than £1,000 needs a Proof of Debt form, while for £1,000 or less the customer gives their contact details and the amount owed. The case handler may be described as the trustee, liquidator or official receiver, and the details can be found through the Individual Insolvency Register or Companies House.
What to expect
Both sources are frank about the outcome. GOV.UK says payments are made only if there are more than enough assets after the costs and expenses of the insolvency and secured creditors, and that if the person or company does not have many or any assets, no money will be recovered. Citizens Advice says other people, such as banks, will get paid first, so a customer might not get any money back, and that there is no automatic refund right for unopened items bought before the closure. It adds that court action is not possible against limited companies that have stopped trading.
Protecting a future pram purchase
- Pay by credit card for orders over £100 where possible.
- Avoid paying the full price long before delivery where the retailer offers a deposit.
- Keep the order confirmation, receipts and any correspondence.
- If a delivery is late, act early, using the rights in the guide to late or undelivered prams.
Frequently asked questions
Can I get my money back if the pram shop closes? It depends on how you paid: a credit card claim under Section 75 is the strongest route for purchases over £100, and otherwise a chargeback or a creditor claim may be attempted without a guarantee.
Should I still register as a creditor? Citizens Advice says to register as a creditor on GOV.UK, but GOV.UK warns that a full card refund rules out a claim through the insolvency.
Can I sue a closed limited company? Citizens Advice says court action cannot be pursued against limited companies that have stopped trading.
The bottom line
If a pram retailer goes out of business after taking payment, the payment method decides the best route: Section 75 for credit card purchases over £100, a chargeback request for debit cards, and a creditor claim as a last resort that may recover nothing. Paying by credit card and avoiding large prepayments are the practical protections.