So you prepaid for goods or services, and now you learn that the business you dealt with has closed. If you’re not sure about your options, keep reading for tips on how you may be able to recoup your loss.

  1. Try to cancel the payment. If you paid by credit card, contact your credit card provider to see if charges can be reversed. Similarly, if you paid by cheque, contact your bank to see if you can stop payment.
  2. Find out if the business is licensed or a member of an organization. In some instances, compensation may be available to affected consumers. For example, if a BC-licensed travel agency goes out of business and if the contracted travel services were not provided, consumers may be eligible to make a claim with the Travel Assurance Fund.
  3. Research other options. If the business has filed for bankruptcy you may have some other options. The website for the Office of the Superintendent of Bankruptcy Canada has a lot of great information about what to do if you are owed money and about the bankruptcy process.

ADDITIONAL READING:

Online shopping: tips to receive your refund when your package never arrives
What to do if your travel agency closes