LAYAWAY PLANS

Complaints to our offices indicate that there is much confusion about this topic. Some consumers believe that a layaway plan means that they can make a payment whenever they have cash for however long they want. In one (1) such case a female complainant to our office, placed a deposit on steel and other hardware items at a store in her neighbourhood and did not return to pickup the items until a year later. On the other hand, there are a number of vendors who believe that when a person has “paid down” on an item they can sell the item and offer the customer a similar item, often at a higher price, at the final installment or after the final payments are made. The Consumer Affairs Commission (CAC) wishes to advise you that both these beliefs are wrong.

A layaway plan is an agreement between a vendor and his/her customer to pay for an item over a specific period of time. The average layaway plan has the following components:

1. A deposit is made on a specific item.
2. The seller removes the item from display and puts it aside.
3. The balance is paid off in the agreed installments by an agreed date.
4. The item is collected/delivered to the consumer.

There is no set system by which consumers are required to make payments; instead, this has to be negotiated on a case-by-case basis by the vendor and consumer. Entering into a layaway agreement does not lessen your right as a consumer. You should still expect to be provided with a product that:

• serves the purpose for which you bought it.
• has no defects, unless this was pointed out to you.
• will not cause you harm if used properly.
• and one that has a reasonable life span, if properly maintained.

Remember also, that buying on layaway does not mean you should pay more for the product. Ask the vendor before you enter into the agreement if there are any additional charges. Get and keep a record/receipt of all your payments and finally, ask how you will be compensated if the vendor loses, sells or damages the item.

Tell us what issues you want addressed

Send e-mail to: cacjam@infochan.com or star@gleaner.com

Write to us at: 1B Holborn Road, Kingston 10 Or call us at: 926-1650-2 or toll free 1-888-991-4470, ask for our Information Desk