Layaway

Layaway

Another Way to Buy

Layaway purchase plans are designed for people who want to buy products without using credit or paying the full price immediately.

When you use layaway, you typically put down a deposit — usually a percentage of the purchase price — and pay over time; the retailer holds the merchandise for you in reserve until you have paid for the item in full.

Layaway Tips

Get the merchant’s layaway policy in writing. Look for details on:

XTHE TERMS OF THE LAYAWAY PLAN: How much time you have to pay for the merchandise or service; when your payments are due; the minimum payment required; and possible charges for using the plan, such as a service fee. Find out if there is a fee or a penalty for missed or late payments.

XTHE REFUND POLICY: If you decide you don’t want the merchandise after you’ve made some or all the payments, can you get a refund? Retailers’ policies may differ from a full refund to a merchant credit.

XCHECK OUT THE BUSINESS. Contact your state Attorney General’s Office (www.naag.org), local consumer protection agency (www.consumeraction.gov), and your local Better Business Bureau (www.bbb.org). They can tell you if consumers have filed complaints against the retailer or online service.

XKEEP GOOD RECORDS: Keep records of payments you make on layaway merchandise. They may come in handy if you have a problem with the seller.

What Laws Protect You?

Layaway plans are not specifically governed by federal law, but the FTC works for the consumer to prevent fraudulent or deceptive business practices. To file a complaint or to get information on consumer issues, visit ftc.gov or call (877) 382-4357.

Source: Federal Trade Commission