Booktopia’s fall is the latest business collapse to hit Australian consumers, leaving some out of pocket.

All trading on the Booktopia website ceased last week as administrators announced orders placed with the bookseller would not be filled.

Customers who had already made purchases but were yet to receive their products were told to lodge a proof of debt form to make a claim, although this would not guarantee a refund.

Whether these claims would result in refunds depends on the outcome of the potential sale of the company, recapitalisation, or realisations from other assets, the administrators said.

This comes after thousands of travellers were told they might not receive refunds for cancelled flights due to budget airline Bonza entering voluntary administration.

Last week I was a trusting customer of #Booktopia forking out $40 for a hard to get book. That never arrived. Today was informed I am a ‘creditor’ of Booktopia. Three unfulfilled orders. No records on website. Trust trashed.

— Anne Summers (@SummersAnne) July 10, 2024

An Australian Competition and Consumer Commission (ACCC) spokesperson told The New Daily when a business enters external administration, consumers’ ordinary legal rights can be affected.

“What happens to consumers’ rights with respect to outstanding orders, credits, gift cards, refunds and other reimbursements will depend on what happens in the administration process,” the spokesperson said.

“The administrator should provide information for impacted customers in due course on what will happen with outstanding orders, credits, gift cards, refunds and other reimbursements.”

It may seem like consumers have to wait on the whims of the business world if they hope to see their money again.

But there are some avenues worth exploring to get back your hard-earned dollars.

Good news for card payments

The ACCC spokesperson said consumers who had paid for products or services with a credit card, debit card or through a secure payment provider such as PayPal might be able to get their money back by asking their financial institution or card provider to reverse the payment.

This is known as a ‘chargeback’.

But Consumers Federation of Australia chair Gerard Brody said there are often time limits for when action can be taken, so get in quick.

“That means that [consumers] can make a complaint to their bank and get the amount charged back to their card,” he said.

“There are time limits to chargebacks that are different for different schemes, but it’s usually between 60 and 90 days.

“So I would encourage people to get onto it as soon as they’re aware that the goods aren’t going to be delivered.”

If you preordered my book from booktopia it’s probably not coming. I’ve been told trying a charge back with PayPal or your credit card company is the best way to get your $$$ back. I’m sorry this happened, I am devastated for everyone, I’m powerless and negatively impacted too.

— Dr Emma Beckett (@DrEmmaBeckett) July 10, 2024

Brody said if you have problems with accessing a chargeback or the banks decline within the relevant period, you can complain to the Australian Financial Complaints Authority.

If you have a recurring payment that is still being taken out of your bank account, Consumer Action Law Centre policy officer Rose Bruce-Smith said you should ask your bank to cancel the payment as fast as possible.

Cash turns consumers into creditors

If you paid for goods or services with cash upfront or a direct bank transfer, you may be out of luck.

Bruce-Smith said paying by cash or direct transfer meant you would be considered a “creditor as part of an insolvent business”.

“However, it can’t hurt to contact the organisation and seek a refund from them direct,” she said.

“This might be a long and complicated process with limited chance of success.”