Third-party layaway companies provide online services for retailers without layaway programs. Customers view retailers’ merchandise on third-party Websites and make payments to the company. Once the item is paid in full, the business buys the item from the retailer and ships it to the customer.
It’s important to familiarize yourself with companies’ layaway policies before entering into agreements and get everything in writing. You should also check companies out with your BBB by visiting www.bbb.org or calling (937) 222-5825 or (800) 776-5301.
When considering layaway, you should find out how much time you have to pay for the item. Most layaway plans allow 30 to 90 days to make payments and the earlier you start, the more time you have to pay.
Deposits are generally 10 to 20 percent of the purchase price, plus store or service plan fees. Keep in mind the more money you put down, the less you’ll have to pay monthly.
Find out when payments are due and what happens if payments aren’t made on time. Are there additional fees or will merchandise be put back into inventory? And, determine what happens if your merchandise goes on sale while in layaway.
Finally, ask about the company’s return policy if you decide you don’t want the merchandise after making payments. Can you get a refund or store credit? And, will the miscellaneous fees be refunded as well?
Layaway can be a great alternative to paying for merchandise in full or using credit cards. Help ensure a successful experience by reading the fine print and following the terms.
John North is president and CEO of the Better Business Bureau.
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