Chances are you already know what a laybuy is since a family member, a friend or a colleague already informed you about this payment scheme. It is designed to help consumer in purchasing items that they deem to be expensive or beyond their capacity.
In the off chance that you are not yet aware what a laybuy is, it is an agreement that you make with a seller regarding a product that you want to purchase and the payment condition (how you are going to pay for it and for how long). The only difference that this scheme has over other instalment plans is that you would not have the merchandise unless you have paid for it completely.
Before you engage in such arrangements, make sure first that you know all the rules to avoid being taken advantage of some unscrupulous sellers and dealers.
The price of the product is fixed
Once you go into an agreement with the seller, the price of the product is fixed. They could not increase the price and you could not ask for a discount even if a model newer than the product you intended to buy became available and is sold cheaper.
If they suddenly backed out of the agreement and jacked up the price, you could file a complaint since these types of agreements are being regulated by local and national authorities. What you agreed on at the beginning, this is what you need to pay and the minimum amount is to be determined on how long you are going to pay for the full amount (i.e., an item for $1000 to be paid within 10 months is $100 per month).
You should not be charged with interest on the outstanding
If you read the rules regarding laybys online, you’ll see that the customer should not be charged with interest on the outstanding debt that they need to settle. You should be wary of this and if possible, to clarify with the seller or to read twice the agreement or contract that you need to sign with regards to this before you agree.
You have a say on the duration
You, as the customer has a say on the period and duration of the agreement. You and the seller must agree and not just them deciding until when because the agreement could be anything from 1 week to several months.
Terms and conditions
When you enter into a laybuy agreement, you must be informed of the terms and conditions first. If the seller forgot to inform you, ask. It is recommended that you know all the things that the agreement entails before agreeing and it should be in writing.
The agreement must include the type of product that you are purchasing, the price, the amount of deposit you have paid, the maximum period for the agreement and cancellation and refund policies. As a last note, don’t forget about the cancellation and refund policies and when you would be entitled for a full refund and how much is