If you grew up back in the day and relied on layaway to make purchases on a regular basis, I know that you had some unexpected challenges. Did you ever have an item on layaway and the store went out of business? The reality is that you ended up without your merchandise and without your money. What happened after you made several layaway payments and then as sometimes happens your money became real tight and you were unable to complete the purchase? In some cases, because you did not have clarity with regard to the layaway rules, you forfeited the item as well as your money. Has anyone had an item on layaway only to have it go on sale? So, what occurred if a young lady made a layaway of a dress at this time of the year for New Year’s Eve and her eating habits were out of control? I do not know what happened when the new requirement is for a size 10 dress when the dress on layaway is a size eight.

While layaways of the past have seen a re-launch in recent years, such plans have drawn the scrutiny of congressional leaders such as U.S. Sen. Charles Schumer who is a staunch opponent of layaway plans.

Because there are no federal laws that control layaway plans, consumers must rely on the Federal Trade Commission Act against unfair and deceptive practices. The Federal Truth in Lending Act also comes into play if the consumer must agree to terms in writing to make all payments until an item is paid in full. Furthermore, there are those that argue that layaway plans are far worse in making purchases than credit cards.

Think about the old adage, “What goes around comes around,” as this is the case with the return of the concept of layaway today. If you are considering the purchase of something today, and you do not have cash and using a credit card may not be something that is available to you, layaway may be your only option.


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