Layaways and Fees

"As Black Friday draws near, thoughts turn to holiday shopping, and how to get the items you want for a price you can afford. If you choose to buy using layaway, the Federal Trade Commission (FTC), the nation’s consumer protection agency, has a few holiday tips for you:

First, get all the details about the retailer’s layaway plan in writing before you shop. Look for the terms of the plan — including the time you have to pay for your items, the store’s refund policy for layaway items, minimum payments, and layaway charges or other fees.

Second, it’s useful to compare the costs of using layaway versus using credit. Add up the total amount in fees you will pay at a specific store before you get your item(s) out of layaway. Then, if you have a credit card, determine how much money in interest you would pay if you charged the same item(s).

Third, be sure to check out the store, including online retailers, before you shop there at all. 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) can tell you if consumers have filed complaints against the retailer or online service..."