Be Scam Smart
Lay-by now for Christmas to avoid credit hangover
Fair Trading Minister Margaret Keech is advising Queenslanders to avoid trouble with credit this Christmas by putting gifts on lay-by. “Christmas may seem a long way off, but it's never too early to think about lay-bying gifts," Mrs Keech said.
"Lay-by is a sensible alternative to credit - something that can easily spiral into a debt that needs to be paid off well beyond the festive season." Mrs Keech said lay-bys generally had no credit charges, although there could be administration fees.
"With lay-by, the retailer agrees to keep the price the same until the item is fully paid and the customer agrees to make regular payments," she said. “There are no lay-by laws in Queensland, however customers using lay-by are entering into a contract with conditions that vary from store to store.”
"Shoppers should get the terms and conditions of their lay-by purchases in writing before lay-buying an item. "Mrs Keech said lay-by agreements should include a description of the goods, the total price of the goods, any deposit paid, the time intervals for payment (weekly or fortnightly), the maximum length of the lay-by, and any cancellation process or charges.
"Remember, if you break the contract you could lose the money you've already paid and the goods," she said. "But as long as you make your payments the item will be yours, and you won't be paying for it long after it's unwrapped on Christmas morning."
More information and advice, including the Good Credit Guide, is available from the Office of Fair Trading by calling 1300 658 030 or visiting the website at www.fairtrading.qld.gov.au.
Last Updated: 16/12/2005