RE: Lay-a-way next fiasco?

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RE: Lay-a-way next fiasco? - 11/13/2011 4:15:49 PM

thompsonx

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quote:

ORIGINAL: tazzygirl

Here is how Kmart's works.

http://www.kmart.com/shc/s/dap_10151_10104_DAP_Kmart+Layaway?sid=KSx20070515x00001d&psid=42x208019#tab2

This from your cite:

Service Fee
is $5 for all new layaway contracts.*

Cancellation Fee
is $10 for all new layaway contracts.*

Down Payment
is $15 or 10% (whichever is greater) and is collected when merchandise is put on layaway.*

4 Easy Payments
of balance due are required after down payment for an 8-week layaway contract.

* Except where prohibited by law, in which case the
down payment would be less than that amount. See
stores for state specific fee limitations. Down
payment includes a $5 service fee for an 8-week
contract. No partial cancellations are permitted.
Cancellations can be made only in the store
where you opened your contract

For the math challanged this is between 240% and 266% for a four week layaway or between 120% and 133% for an 8 week layaway

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RE: Lay-a-way next fiasco? - 11/13/2011 4:16:04 PM

CarpeComa

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What the congressperson is saying is that a single $5 payment on $50 is the equivalent of borrowing $50 for one month from a credit card company at an 120% annual interest rate. Assuming a more normal 20% annual interest rate, it is cheaper to use the credit card in that situation if you can pay off the balance in less than six months. The more expensive the item, the better lay-a-way becomes, assuming that the lay-a-way fee is fixed.

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RE: Lay-a-way next fiasco? - 11/13/2011 4:23:31 PM

tazzygirl

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That was a point I made earlier. Rarely does anyone I know use layaway for just a doll. Its typically larger purchases, tv's and such... or mass quantities of toys. When the item is retrieved, its paid off. No bills, no credit card debt. The "interest" payment is a one time fee.... we who utilize that program understand that.

This is what we know...

I can pay them 5 dollars for them to hold up to 400 dollars worth of product, store it for me, saving me the hassle of having to save and hope and pray I can get the "kids" what they really want instead of having to settle for what I can find at the last minute.

For many, its worth the 5 dollars.

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RE: Lay-a-way next fiasco? - 11/13/2011 4:48:24 PM

EternalHoH

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Back in the 1970s when lay-a-way was popular before the mass adoption of credit cards happened, there was no fee to use the service. You simply had to put down a percentage based on the price, and make weekly payments. Nobody made any profit off of the 'service', the store simply profited from the sale itself, a sale it otherwise would not have had without the time payment option. If you didn't make the payments on time, the item simply went back on the shelf.

The mass adoption of credit cards allowed a nation to "get their hands on their goods now" while simultaneously making time payments, compared to those old lay-a-way programs that kept the goods held away from us until paid in full, so naturally, the credit card replaced the lay-a-way programs of old. Now that credit card ABUSE and title loan ABUSE is so prevalent, the stores are looking to take a slice of that profitable business and are bringing back lay-a-way programs with their own type of service fees that are only *mildly abusive*. Even though the lay-a-way service of old had NO FEES.

This type of 120% apr behavior on behalf of stores would have been classified as prosecutable loan sharking back in the 1970s. Today, this behavior is simply another day in business in America. Something arising from the massive political movement to financially punish the dumb and reward the sharks for their "hard entrepreneurial work". God Bless America and all that.

< Message edited by EternalHoH -- 11/13/2011 4:53:55 PM >

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RE: Lay-a-way next fiasco? - 11/13/2011 4:54:00 PM

tazzygirl

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quote:

The mass adoption of credit cards allowed a nation to "get their hands on their goods now" while simultaneously making time payments, compared to those old lay-a-way programs that kept the goods held away from us until paid in full, so naturally, the credit card replaced the lay-a-way programs of old. Now that credit card ABUSE and title loan ABUSE is so prevalent, the stores are looking to take a slice of that profitable business and are bringing back lay-a-way programs with their own type of service fees that are only *mildly abusive*. Even though the lay-a-way service of old had NO FEES.

I was paying layaway fees back in the 90's.

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RIP, my demon-child 5-16-11
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Dont judge me because I sin differently than you.
If you want it sugar coated, dont ask me what i think! It would violate TOS.

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RE: Lay-a-way next fiasco? - 11/13/2011 5:07:19 PM

thompsonx

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quote:

ORIGINAL: tazzygirl

I was paying layaway fees back in the 90's.

quote:

Back in the 1970s when lay-a-way was popular before the mass adoption of credit cards happened, there was no fee to use the service.

Do you realize tht the 90's are not the70's ?
Or :
Is posting your opposition to something more important than actually knowing what you are posting against?

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RE: Lay-a-way next fiasco? - 11/13/2011 5:10:54 PM

tazzygirl

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quote:

Even though the lay-a-way service of old had NO FEES.

I realize at your age that 20 years may not be old.

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Telling me to take Midol wont help your butthurt.
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Duchess of Dissent 1
Dont judge me because I sin differently than you.
If you want it sugar coated, dont ask me what i think! It would violate TOS.

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RE: Lay-a-way next fiasco? - 11/13/2011 5:43:54 PM

Termyn8or

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"The "interest" payment is a one time fee.... we who utilize that program understand that. "

Wait a minute. Interest is what you pay on shit you get BEFORE you pay for it, not AFTER you pay for it.

T^T

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RE: Lay-a-way next fiasco? - 11/13/2011 5:51:48 PM

tazzygirl

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Its actually a service fee, T.

< Message edited by tazzygirl -- 11/13/2011 5:52:00 PM >

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Telling me to take Midol wont help your butthurt.
RIP, my demon-child 5-16-11
Duchess of Dissent 1
Dont judge me because I sin differently than you.
If you want it sugar coated, dont ask me what i think! It would violate TOS.

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RE: Lay-a-way next fiasco? - 11/13/2011 6:26:06 PM

Termyn8or

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Oh SERVICE FEES ! That makes it ok. That mwans that 35,982% APR people are paying on their payday loans is all nice and legal. (actually it is)

Hmmm, now that I think of it, itis. There was a move to limit those fees but somehow the whole issue evaporated. You don't think there was money involved now.

T^T

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RE: Lay-a-way next fiasco? - 11/13/2011 6:33:32 PM

tazzygirl

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Hmmm... the poor cant get credit cards.

So its better to pay all that interest to a pay day loan company than 5 dollars for a layaway.

Interesting.

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Telling me to take Midol wont help your butthurt.
RIP, my demon-child 5-16-11
Duchess of Dissent 1
Dont judge me because I sin differently than you.
If you want it sugar coated, dont ask me what i think! It would violate TOS.

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RE: Lay-a-way next fiasco? - 11/13/2011 7:00:15 PM

DomYngBlk

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quote:

ORIGINAL: tazzygirl

ALBANY, N.Y. -- The return of layaway plans this holiday shopping season is raising concern that the break from credit cards might actually cost consumers far more.

For example, a rock `n' roll Elmo doll that requires a $5 layaway fee and a 10 percent down payment for a month can equal a credit card that charged more than 100 percent interest, U.S. Sen. Charles Schumer said Sunday.

Schumer is asking major retail associations to direct their members to more clearly present their layaway fees to customers. The Democrat says the ultimate cost of a layaway with a $5 fee can equal 40 percent interest over a month or two for many common purchases compared to the annual rates of most credit cards.

Read more: http://www.foxnews.com/politics/2011/11/13/schumer-targets-lay-away-charges-as-next-credit-fiasco/print#ixzz1dcwwBZ00

Meet the next "bubble" folks... lol

In all honest, he is a Democrat, and he is stupid. Law-a-ways help many low income people buy christmas for their familes. He gives an example...

Most are only 8 weeks... most people put more than one item on layaway.. and people have been well aware of the costs associated with its use.

I see this as taking money out of the credit card companies. Many people dont have credit cards......Are the CC companies putting pressure on some members of Congress?

Haven't read the whole thread but he has this right in part. Walmart for one is charging 4% on layaways. 4% on a product that you aren't going to use till it is paid for in full....That they don't even own in the first place since they always make their suppliers keep the inventory on their books till it is sold at the register. fucking thieves

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RE: Lay-a-way next fiasco? - 11/13/2011 7:27:53 PM

Termyn8or

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"So its better to pay all that interest to a pay day loan company than 5 dollars for a layaway."

No, pay five cents for an envelope and stick money in it every payday. Pay yourself the five bucks. Goddamn, people.

Like Homer Simpson at the bar with Moe unloading a huge deepfryer, Moe says "You can deepfry a yak in ten seconds" and Homer says "But I want it now".

If people were really grown up and could do without this fuckling garbage there would be no way in hell they would pay even the price, let alone this scheme which is so far beyond usury that they ain't even in the same league.

I agree two things. If the customer starts a lataway and renegs, there should be a charge. The layaway should have a finite life and if it goes beyond, THEN there can be a charge, but on layaways discharged in a timely fashion, no charge.

I can say that because I don't need their fucking junk and I know it, so they will never charge me that. When everyone has the ability to say no, there are no such charges.

T^T

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RE: Lay-a-way next fiasco? - 11/13/2011 7:44:07 PM

Termyn8or

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"always make their suppliers keep the inventory on their books till it is sold at the register. fucking thieves "

And the suppliers are cohorts. Using "Use of the money theory" they figure out when all the fiscal years end and shit and figure out how to maximixe profit by minimizing stagnant capital, such as the tax fund etc. As long as they can hold onto that money they get interest. (alot more than we do)

Depending on the way a business is run, they might not WANT to have contol of too much capital at one time, or certain times. Some businesses profit by the ebb and flow of liquid assets, others do better with a steady cash flow. It all depends.

So I don't quite buy that they are all coerced into doing this, although I am aware of Walmart's strongarm tactics.

They must have a hell of alot of clut when they can get Sony to cowtow their mark, which is to build specially stripped down versions of their products for Walmart shelves, and get them to also hold the paper on the product. That's what the tactic was called in the past.

T^T

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