A layby sale is one where you pay by instalments and the goods are held by the retailer until you pay off the balance or a specified portion of the total price. You'll usually pay a deposit: 10 to 20% of the purchase price is the usual amount of a deposit but you and the retailer can agree to a different amount.
What are the features of a layby sale?
The main features of a layby sale are: it relates only to goods (not to services) the purchase price of the goods is less than $15,000 payment is made in three or more instalments (or two instalments if the agreement specifies it is a layby) – a deposit is counted as an instalment
Can I buy goods on layby?
Buying goods on layby can be a convenient way to shop. What is a layby sale? The main features of a layby sale are: the purchase price of the goods is less than $30,000 payment is made in three or more instalments (or two instalments if the agreement specifies it is a layby) – a deposit is counted as an instalment
What is layby and how does it work?
Layby is a popular way to buy goods when you can’t afford to pay for them straight away. the item costs less than $15,000. Any sale that matches this description or type of sale is a layby sale, even if the seller calls it by another name, eg part-payment. You can't be charged interest if you buy something on layby.
What is the difference between layby sales and Buy Now Pay Later?
While both layby sales and buy now pay later (BNPL) sales involve paying in instalments, they differ in when the customer receives the product. For layby sales, customers do not receive the product until they have paid the agreed-upon price.
What is a layby?
What is a layby agreement?
What are the penalties for a retailer breaching layby sales?
What happens if a retailer goes into receivership?
What to do if you have trouble meeting layby payments?
What happens if you layby a product?
Can you cancel a layby?
See 4 more
About this website
How does layby work?
A lay-by agreement lets you buy a product and pay for it in two or more instalments before taking it home. It's important for you to understand what the written agreement covers and how you or the business can cancel it.
What are the disadvantages of lay-by?
Lay-by could become expensive if you change your mind or can't keep up the payments, as you'll likely lose the service fee and may be charged a cancellation fee. However, if you just need a longer period to pay it off, ask the retailer as they'll often allow you to vary the payment terms.
Do you have to pay layby?
Layby is a way to buy goods when you can't afford to pay for them straight away. A layby sale is when: you pay for something in instalments. the retailer keeps the item until you've paid for it (or an agreed part of it), and.
What does it mean to buy on lay buy?
What is Lay-by? Lay-by is a payment option that allows you to purchase goods that you may not be able to purchase in cash, by having the store that you have purchased it from hold it for you while you pay it off in an agreed time frame.
Why are lay people good?
The term 'lay people' is used to describe the use of ordinary, non-qualified people in the legal system. It is believed that by using ordinary people in courts it makes the system fairer and avoids people criticising the court for making decisions behind closed doors.
What is a layby deposit?
A lay-by agreement is when you pay for goods in at least two or three instalments, and do not receive the goods until the full price has been paid. Any deposit you pay is considered an instalment. Lay-by agreements are helpful when you are making a big purchase and don't want to pay with credit.
How long does a layby last?
If you buy goods 'on lay-by', the seller will keep those goods for you for up to six months while you pay off the price in instalments.
What happens if I don't pay my layby?
What Happens When You Miss a Laybuy Payment? Laybuy will charge you default fees when you miss a payment and you can't pay the outstanding within 24 hours.
Can you return layby items?
A consumer is entitled to cancel the lay-by agreement and request a refund before making full payment of the purchase price.
Do you pay upfront with Laybuy?
There are no upfront fees to pay on your Laybuy account. Interest-free. Laybuy only offers 1 payment plan, but you won't have to pay any interest and will be able to spread the cost over 6 weeks with equal payments. Easy-to-use app.
Can you pay layby off early?
Can you make payments earlier than the due date? You can choose to make a weekly payment earlier than the due date at any time. You'll be able to do this in your Laybuy account or in the app. This won't change the due dates of any remaining payments you have to make.
How do you qualify for Laybuy?
To be eligible to use Laybuy you must: be at least 18 years old. have a valid and verifiable email address and mobile telephone number. have a valid debit or credit card. have a valid licence or passport (issued from the country you are signing up to)
Does Laybuy affect credit score?
Repayment data from Laybuy won't affect your credit score - for now.
How does Laybuy work at Ackermans?
How It WorksLay-by at any Ackermans store with your ID or driver's licence.Pay a 10% deposit.Pay your lay-by over a three month period at any Ackermans store*. You'll need your original lay-by till slip. ... Check your lay-by: In Store. ... Collect your items at the store where you started your lay-by.
What is the maximum Laybuy limit?
When a customer signs up to use Laybuy, we do a credit check to determine their Laybuy limit (ranges between $120 - $1,500).
Is layaway considered a loan?
Stores that offer layaway plans may charge a fee to use them, though you typically won't pay any interest since this is not a loan.
Laybys and buy now, pay later | Consumer Protection
Example — Cancellation fee too high. Max buys an entertainment system on layby for $10,000. His wife is horrified when he tells her. Max cancels the next morning and the retailer charges him a $100 cancellation fee.
Fair Trading Act 1986 - Legislation
If you need more information about this Act, please contact the administering agency: Ministry of Business, Innovation, and Employment
What is a layby?
A layby sale is one where you pay by instalments and the goods are held by the retailer until you pay off the balance or a specified portion of the total price. You'll usually pay a deposit: 10 to 20% of the purchase price is the usual amount of a deposit but you and the retailer can agree to a different amount.
What is a layby agreement?
Layby agreement. Every layby sale agreement must be in writing and expressed in plain language. You must be given a copy at the time the agreement is made. The front page of the agreement must contain: a clear description of the goods to be supplied. a summary of your rights to cancel the agreement. whether or not a cancellation charge applies and, ...
What are the penalties for a retailer breaching layby sales?
Retailers also risk being prosecuted by the Commerce Commission for failing to comply with requirements for layby sales. Penalties for breaches are $10,000 for an individual and $30,000 for a company.
What happens if a retailer goes into receivership?
Retailer in receivership. If your retailer goes into receivership, contact the receiver, whose name and address will probably be on a sign on the shop door. Assuming your goods are still there, you can continue with the agreed payment schedule.
What to do if you have trouble meeting layby payments?
Trouble meeting payments. If you're having trouble meeting payments, but want to continue your layby agreement, ask the retailer if the time period can be extended and therefore the amount of each payment reduced.
What happens if you layby a product?
Goods on layby are still covered by the Consumer Guarantees Act. If the goods are damaged or faulty, the shop must repair them, replace them, or give you a full refund. If you wished, you could negotiate a discount. With layby sales, you don't own the goods until you've made the final payment.
Can you cancel a layby?
Cancelling a layby. You can cancel a layby at any time before you take possession of the goods and you don't have to give a reason. The trader can only require you to pay a cancellation charge if this is set out in the layby agreement. Any cancellation charge must not be more than the trader’s “reasonable costs”.
What is layby sale?
What is a layby sale? The main features of a layby sale are: it relates only to goods (not to services) the purchase price of the goods is less than $15,000. payment is made in three or more instalments (or two instalments if the agreement specifies it is a layby) – a deposit is counted as an instalment.
What is included in a layby sales agreement?
The layby sales agreement must also include: the total price payable. the date that the layby is entered into. If the contract is also a credit contract you might have to provide additional information.
How long does it take to get a layby statement?
The customer can request a written statement of their layby sale account at any time. You must provide this free of charge within 5 working days of receiving the request.
When does a customer take possession of goods?
the customer doesn't take possession of the goods until all, or a specified amount, of the total price of the goods has been paid for. the risk in the goods remains with you until the customer has received them or until the customer has paid for them. So if you let the customer take the goods before they have paid in full and the goods are damaged, ...
Can you cancel a layby sale?
The customer can cancel the layby sale agreement at any time , for any reason, before they take possession of the goods. If the goods were purchased as part of a door-to-door or telemarketing sale there are additional rules and extra information you must provide.
Is a layby sale a credit contract?
If you are selling goods or services and they are being paid for in instalments, but fees (other than a cancellation fee) or interest are included, then as well as being a layby sale, this may also be a credit contract. Read more about your responsibilities if you provide credit.
Can you charge a cancellation fee for a layby?
The cancellation fee can 't be for an amount more than your reasonable cost arising directly from the layby agreement. You also cannot charge a cancellation fee if you have sold the goods door-to-door or as a telemarketing sale and the customer has cancelled during the 5 day cooling off period.
How does layby sale work?
In a layby sale , you pay a deposit on an item and the shop puts it aside while you pay off what you owe within a certain time. The shop keeps the goods and still owns them until you pay off the full price (or an agreed part of it). You don’t pay any interest while you’re paying off the item, but you don’t get to take possession ...
What information must be on the front page of a layby sale?
The following information must be on the front page: a clear description of the item you’re buying. a summary of your right to cancel the sale (see below, “Your right to cancel a layby sale”)
What happens if you buy on layby?
If you buy on layby, you get some special protections under the Fair Trading Act, including the right to cancel the sale at any time before you take the goods home.
Can you cancel a layby before you take possession of the goods?
Fair Trading Act 1986, ss 36F, 36H. You can cancel a layby at any time before you take possession of the goods. You don’t have to give a reason for cancelling. To cancel, you don’t have to follow a particular process or use a particular form or a particular set of words.
What is a layby sale?
A layby sale is when: you pay for something in instalments. the retailer keeps the item until you’ve paid for it (or an agreed part of it) the item costs less than $15,000. Any sale that matches this description or type of sale is a layby sale, even if the seller calls it by another name, eg part-payment.
What does "laybys and buy now pay later" mean?
Laybys and buy now, pay later. Laybys and buy now, pay later. Layby means you pay instalments and get the item once it's paid off. Buy now , pay later means you get the item straight away then pay it off. Consumer laws protect laybys but not buy now, pay later sales.
How long does it take to get a layby statement?
You can also ask for a free statement of your layby account at any time, which the retailer must provide within five working days. The statement must include:
How much does Max pay for layby?
Max buys an entertainment system on layby for $10,000. His wife is horrified when he tells her. Max cancels the next morning and the retailer charges him a $100 cancellation fee. Max offers to pay $20, which he thinks is reasonable for the 10 minutes of staff time he used setting up the layby. If the retailer disagrees, they need to justify that the $100 fee is reasonable.
What to do when it's hard to afford a layby?
If it's hard to afford your layby or buy now, pay later payments, think about why. Look at your spending habits. Talking to a budgeting advisor in your community can help.
What does BNPL stand for?
The Government wants to know more about your experiences with Buy-Now, Pay-Later (BNPL) both the good and the bad. Have your say here:
When do you get the goods?
You get the goods as soon as you make the first payment.
What information must the seller give you?
When you enter into a layby sales agreement, the seller must provide you with a written copy of the agreement.
Can I cancel the agreement?
Yes. Either you or the seller can cancel the layby, but there are different rules depending on who is cancelling it.
How Does the Law Apply to Selling Goods Online?
Whenever you sell goods to consumers for their personal use, you need to comply with different aspects of consumer law. This regulation protects consumers against bad or manipulative deals and gives them certain rights that you, as the seller, need to observe.
What You Have to Do as the Seller
When you sell on layby, you must provide the customer with a copy of the layby agreement. It must be in plain language and in writing. Additionally, the front page must detail:
Consumer Rights in Layby Sales
Furthermore, you also need to observe the specific rights that consumers have in regards to these sales. These include:
Key Takeaways
Selling goods on layby can accommodate your customers’ payment schedules and open up potential sales for you. However, you must comply with the law when you engage in these kinds of sales, which remains true when selling online.
What is a layby?
A layby sale is one where you pay by instalments and the goods are held by the retailer until you pay off the balance or a specified portion of the total price. You'll usually pay a deposit: 10 to 20% of the purchase price is the usual amount of a deposit but you and the retailer can agree to a different amount.
What is a layby agreement?
Layby agreement. Every layby sale agreement must be in writing and expressed in plain language. You must be given a copy at the time the agreement is made. The front page of the agreement must contain: a clear description of the goods to be supplied. a summary of your rights to cancel the agreement. whether or not a cancellation charge applies and, ...
What are the penalties for a retailer breaching layby sales?
Retailers also risk being prosecuted by the Commerce Commission for failing to comply with requirements for layby sales. Penalties for breaches are $10,000 for an individual and $30,000 for a company.
What happens if a retailer goes into receivership?
Retailer in receivership. If your retailer goes into receivership, contact the receiver, whose name and address will probably be on a sign on the shop door. Assuming your goods are still there, you can continue with the agreed payment schedule.
What to do if you have trouble meeting layby payments?
Trouble meeting payments. If you're having trouble meeting payments, but want to continue your layby agreement, ask the retailer if the time period can be extended and therefore the amount of each payment reduced.
What happens if you layby a product?
Goods on layby are still covered by the Consumer Guarantees Act. If the goods are damaged or faulty, the shop must repair them, replace them, or give you a full refund. If you wished, you could negotiate a discount. With layby sales, you don't own the goods until you've made the final payment.
Can you cancel a layby?
Cancelling a layby. You can cancel a layby at any time before you take possession of the goods and you don't have to give a reason. The trader can only require you to pay a cancellation charge if this is set out in the layby agreement. Any cancellation charge must not be more than the trader’s “reasonable costs”.
