Layaway plans and what to know when using them

Layaway may seem like a new shopping option for many, but it dates back as far as the Great Depression. It’s never completely disappeared, but it’s becoming a popular way to purchase items in today’s economy. Your Better Business Bureau can help you decide if layaway is right for you.

Layaway is designed for people to purchase merchandise without credit or paying the full price immediately. The main advantage is no interest is charged. Also, the item availability is guaranteed by reserving the item. Items put in layaway remain at the store until they’re paid in full. There’s sometimes a fee associated, but some retailers are revamping their layaway policies by getting rid of fees to open layaway accounts. If transactions aren’t completed, items are returned to stock and customers’ money is returned minus any fees.

Some retailers offer online layaway services for purchasing items through their websites. You select merchandise online, make regular payments to the retailer and items are shipped to your home once payments are made in full.

Third-party layaway companies also provide online services for retailers without layaway programs. Retailers allow their merchandise to be displayed on third-party websites from which you select. You set up payment plans directly with the third-party service, which may include automatic checking account withdrawals, check or money orders, credit or debit cards or online payment services. Once payments are complete, the third-party business sends the money to the retailer, which ships the merchandise to you.

If you choose to use a layaway plan, your BBB offers these tips:

• Make sure you know when payments are due.

• Check if a down payment is required.

• Find out how long you have to pay for the merchandise.

• Be sure to know about any extra fees, such as missed or late payments.

• Find out what happens if the item goes on sale after you start making payments.

• Inquire about layaway cancelation. Will you get your money back or in-store credit if layaway is canceled?

Remember, your BBB can provide a list of BBB Accredited Businesses to help make your shopping experience as smooth as possible. It can also provide business reviews on businesses you’re considering. Simply go online to www.bbb.org or call (937) 222-5825 or (800) 776-5301.

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