THE CONSUMER AFFAIRS Commission (CAC), has received several complaints from consumers who are now out of pocket money because of unfair contractual agreements under the lay-away sale agreement.
The CAC is warning consumers to be more vigilant about the kinds of agreements being offered, especially in this busy Christmas season when all the offerings by vendors seem "too good to be true".
LAYAWAY
A layaway plan is an agreement between a vendor and his/her customer to pay for an item over a specific period of time. Unlike the Hire Purchase and Lease Financing Agreements, the vendor in this instance retains possession and ownership of the item until all payments are made.
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; it must not be sold to anyone else.
3. The balance is paid off in the agreed instalments by an agreed date.
4. At the end of the payment period, after the purchaser has satisfied all the conditions of the agreements, the item should not be exchanged for a similar item or anything else unless the customer agrees. The consumer must receive the same or identical item paid for under the sale agreement. Otherwise, this constitutes a breach and the consumer is entitled to a full refund of money paid.
5. The item is collected by or delivered to the consumer.
6. If the consumer fails to take the item or complete the agreed payments, the consumer may not get a full refund. These conditions must however be expressly stated in the contract agreement.
Note:
There is no regulated 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.
Buying on layaway does not mean that you should pay more for the product. Ask before you enter into the agreement if there are any additional charges. Get and keep a record/receipt of all your payments. Finally, ask how you will be compensated if the vendor loses, sells or damages the item.
The Consumer Protection Act (2005) has encoded the Sale of Goods Act, the Fair Competition Act also provide for the regulation of consumer rights and responsibilities under such purchase agreements as Layaway Plans and Cash Purchases.
The CAC is reminding consumers to avoid last minute shopping, which usually contributes to less vigilance on their part and possible dissatisfaction with the service or good purchased.
Do
you have a problem? Is something bothering
you? Write to 
