With the Christmas season fast approaching many are thinking about the presents they will be giving come this holiday season. Whether you are shopping for family and friends, or you are looking to shop for yourself, there are several options available to make those holiday purchases. In recent years layaway has become a great payment alternative to shoppers that may want to get away from credit card debt, are on a budget, or don’t want to shell out the entire cost at once for a big ticket item. Layaway allows you to select an item and pay the balance over time. There is no credit check required, you can avoid paying interest on the purchase, and you may be able to buy unique or hard to find items while they are available.
There are layaway plans available for all types of shopping including electronics, appliances, jewelry, clothing, and even non-retail items like travel, tickets to events, etc. Before you decide to purchase on layaway, Business Consumer Alliancewants you to keep the following in mind:
- Check out the company by obtaining a reliability report from our BCA website. Also look online and ask around for reviews about the business.
- Review the layaway policy thoroughly before signing any agreement and putting down a deposit. Ask questions such as:
- How much is the deposit?
- How long do I have to pay off the merchandise?
- What are the due dates for payments? Can you change the due date for payments?
- Are there any additional fees associated with the layaway service such as storage, processing, handling, or service plan fees?
- What happens to the merchandise if I miss a payment or are late on payment? Will there be any added charges or penalties for late payments? Will the merchandise be returned to inventory?
- What happens if the price drops on the item after you have put it away on layaway?
- Can you cancel the layaway and is there a refund policy for canceled layaway transactions?
- Will a full refund be provided if the layaway is canceled? Is there a restocking fee? Will the refund be in the form of a store credit only?
- Obtain a copy of the layaway agreement. Make sure the agreement includes the following:
- A specific description of your layaway purchase(s)
- How long your good will be held on layaway for you
- The amount of your deposit
- The total price and, separately, a listing of any handling or processing charges
- Any other terms that may apply including the amount of the minimum payment required and whether there is a penalty or loss of merchandise in the case of late payment
- Refund provisions of your deposit and ALL payments if, for some reason, the items have become no longer available in the same condition as they were when you put them on layaway.
Online Layaway
Some online merchants also offer layaway plans directly or through layaway sites. The layaway sites are usually set up by companies that have agreements with multiple merchants and online resellers. They list the items on their websites to choose from. After you select your product(s), then you make payment either by electronic debit, by check or money order by mail, or through an online payment service. Once the balance has been paid, the online layaway service pays the merchant and the merchant ships your product to you. It is wise to use the tips above regarding checking the agreements for terms, conditions, and policies involved in the transaction. For BCA tips on online shopping visit our blog .
As with every purchase it pays to shop around. Decide on what you want to purchase and do some comparison shopping to identify the best bargain. Calculate the purchase and associated fees to see just how much the item will end up costing you. Keep in mind not all items are eligible for layaway and the store may require a minimum limit on the items you place on layaway. For example, Walmart requires individual items to be $15 or more and the total purchase must be $50 or greater. Also remember, unlike purchasing on credit, you will be unable to take the merchandise home until it has been paid off in full. Keep good records of your payments. These can be helpful if a problem arises with the merchant.
For more information on consumer related issues visit our Business Consumer Alliance website and let us know about your recent purchase experience.
About The Author:
Nicole Pitts is a Senior Business Analyst for Business Consumer Alliance. She has been with the organization for 11 years and specializes in report writing, business evaluation, and investigations. Nicole corresponds with businesses regarding complaint trends and provides suggestions to help them alleviate problem areas that may cause concern. She also conducts advertisement reviews, reports on government enforcement actions, and assists the government agencies in obtaining information. She enjoys cooking, reading, and spending time with her family. Nicole can be reached by email at npitts@businessconsumeralliance.org