|
In a column published on October 12, 2012, Chicago Tribune consumer news reporter Gregory Karp noted that layaway “seems harmless enough.” However, Karp called layaway “illogical” and wrote, “Almost nobody should use it for holiday gift purchases this year.” Karp called the oft-repeated claim that layaway allows consumers to save on the interest they would incur by using a credit card a straw-man argument. Credit cards are not the alternative to using layaway,” Karp wrote. “Paying cash is.” Last year, US Senator Charles Schumer of New York demanded retailers display the true cost of layaway fees in “credit card terms. Karp noted Schumer’s statement that a $100 purchase with layaway fees can have the same effective interest rate as a credit card charging 81 percent annually. The column also pointed out that issues with initiation and cancellation fees can create additional headaches. Entering the holiday shopping season, you need to read the fine print of any layaway agreement you might be considering. Kevin Benjamin Benjamin Legal Services
Related Articles -
US Senator Charles Schumer, gift purchases, layaway fees, holiday shopping season, cancellation fees,
| 
