Deals website nCrowd goes bust owing shoppers money - but then reappears under new ownership: How to stay safe when shopping online

Before Christmas, The Mail on Sunday reported that UK discount deals website nCrowd, also trading as BoomStreet, was on the cusp of going bust. 

Since then the business has gone into liquidation but the brand has reappeared online. 

Another company, called Mighty Deals Ltd, has purchased the name and database used by the former business and continues to operate a discount deals website under the name nCrowd. 

There is no suggestion that Mighty Deals Ltd had any connection with the former nCrowd business.  

Here, Laura Shannon explains how this can happen – and warns of the hidden dangers of internet shopping.

Iconic: nCrowd was operated from the Sunsphere building in Knoxville, Tennessee

Iconic: nCrowd was operated from the Sunsphere building in Knoxville, Tennessee

Thousands of shoppers and small businesses who lost money when the UK arm of online deals website nCrowd went into liquidation have been warned they will not be getting a refund.

More than 2,800 people and businesses are estimated to be owed around £1.6million following the collapse of nCrowd. The company also traded as BoomStreet, which is still up and running in the US but under a different company name.

The man behind the online enterprise was US citizen Brian Conley. The 51-year-old serial businessman, who operated nCrowd from an iconic building called Sunsphere in Knoxville, Tennessee, is also facing legal action by small business owners who claim to have lost money in the US. 

In the sun: Brian Conley, ex-owner of nCrowd, with wife Christa

In the sun: Brian Conley, ex-owner of nCrowd, with wife Christa

Only recently Conley was pictured smiling and sipping drinks with his wife in sunny Cabo San Lucas, in Mexico, while his customers counted their losses – some of which run into thousands of pounds – at home and across the pond. 

In the UK, owners of small companies including pubs, hotels, restaurants and beauty salons were approached by nCrowd to offer discounts to customers in a supposed win-win move designed to help the website, small businesses and customers alike.

Merchants honouring these deals say they started to lose out when nCrowd failed to reimburse money paid by customers. 

Many shoppers buying discount goods never received their items. The company ceased trading late last year and officially folded in mid-December. 

Shortly afterwards a letter from the liquidator responsible for winding up nCrowd sent to creditors warned that 'no refunds will be issued by the company and nor will any orders made now be fulfilled'.

A statement from Conley shows money was funnelled from the UK website to help keep the US version afloat. 

In legal documents filed in the US defending Conley's handling of the business, it says: 'Mr Conley at all times acted in good faith and in the best interest of nCrowd when making business decisions affecting creditors.'

New identity: Now the nCrowd website has reappeared – this time run by Mighty Deals Ltd

New identity: Now the nCrowd website has reappeared – this time run by Mighty Deals Ltd

WEBSITE RISES FROM ASHES

Since the demise of nCrowd, it has reappeared online, selling anything from cut-price smartphones to spa days. The website is no longer in the hands of Conley but is a trading name of Mighty Deals Limited, demonstrating how easily website names can be sold on. But people ordering from their computers are given only basic information.

According to records kept by Companies House, Mighty Deals' accounts are up-to-date and it has two British-based directors.

But it is not immediately obvious from looking at the new nCrowd website who it belongs to, unless visitors click on the terms and conditions in the smallprint at the foot of the webpage.

Customers should be aware that the website does not list any contact numbers should any problems arise with their orders. Shoppers with queries about anything from returns to missing deliveries must set up an account and sign in, or send questions via the website rather than using an email address.

Mighty Deals boss Mike Rowe says: 'We have a good reputation in the marketplace. We have ambition to grow and therefore want to provide a good level of customer service – we don't want customers to find it hard to contact us.'

ONLINE SHOPPING ON ANY WEBSITE CAN HAVE RISKS. HERE’S HOW TO AVOID THE ONLINE PITFALLS: 

Consumer experts say research is key to a good experience when shopping online.

Websites such as Trustpilot and TripAdvisor are a good starting point, listing details of other customer experiences.

Online operations run by high street brands are likely to exercise higher standards and provide easier routes of redress if something goes wrong.

But anyone buying through a lesser known entity should check for visible contact numbers and email addresses, as well as clear explanations of how it deals with deliveries, returns and complaints before parting with any money.

Steve Nowottny, of consumer website MoneySavingExpert, says: 'Never assume a website is reputable just because you find it via a reputable search engine.'

He adds: 'If you are unsure, check whether you are buying from a registered UK company by referring to the Companies House website.

'Search online for complaints, check social media for feedback and look for any news coverage of the website.'

Read the terms and conditions of buying through a website and consider paying with a credit card.

Customers who do this have added protection – because if goods or services are not delivered and the website does not respond to refund requests, or if it goes bust, the credit card company should pay back the money.

This applies when goods are priced between £100 and £30,000 and comes under section 75 of the Consumer Credit Act. Nowottny adds: 'It's worth bearing in mind you actually have better rights shopping online compared to in-store, thanks to Consumer Contracts Regulations.

'In most cases, you have the right to simply change your mind, even if there is no fault with what you have bought.'

In this scenario shoppers have 14 days to tell the company and 14 further days to send back an item.

Check also for a padlock sign and 'https' when the website address is typed in, which indicates a payment is secure.

'We were frustrated by awful service' – One family tell of their ordeal after shopping at another website, 24Studio. 

Fed up: Aidan and Sian Bailey bought a bed for son Quentin

Fed up: Aidan and Sian Bailey bought a bed for son Quentin

Aidan and Sian Bailey's order from a discount catalogue website failed to arrive, but so did the refund they consequently asked for in an online experience they describe as 'frustrating'.

The couple, from Henfield, West Sussex, paid £315 upfront for a bed for their 13-year-old son Quentin from 24Studio in October last year.

It never turned up so they cancelled the order – but were left waiting until the New Year for a refund, which only landed in their account after several calls to a helpline, dozens of emails and complaining via social media. 

Aidan, 45, who works as an operations director for a tax and financial planning company, says: 'The service was awful. Funds were eventually returned to our bank account early this month though by this time, I was also seeking a letter of apology and compensation for wasted time and frustration.'

Eventually the Baileys were put in touch with a complaints manager who looked into their order and offered a £500 goodwill gesture, which they accepted. Aidan adds: 'If something goes wrong it is not as simple as popping into the local shop to explain and sort out.

'We ended up spending weeks making phone calls to a helpline where no one seemed willing or able to take ownership of the complaint. Being ignored after 20 emails only served to anger and frustrate us.'

A spokesman for 24Studio said: 'We apologise that our normal standards of customer service were not met. Following communication with Aidan and Sian they have accepted compensation, which has been sent to them.'

Additional reporting: Dan Andrews in Tennessee