Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Consumer
Retailers revive layaway to counter credit crunch
NEW YORK (11/24/08)--This holiday season, national retailers, regional chains and stores have upped advertising for their layaway options, and many consumers are beginning to turn to this once-considered-obsolete payment method (MSNBC.com Nov. 10). The widespread availability of credit cards is what put layaway to rest years ago, according to MarketWatch.com (Oct. 22). But with today’s tightened credit limits, holiday shoppers are increasingly wary of using plastic and are turning to other options such as layaway. Until recently, Kmart Corp. was the only major retailer regularly using layaway, but TJ Maxx Corp., Marshalls Inc., and Burlington Coat Factory have now followed suit. How does layaway work? A retailer holds an item for a customer while she pays off the purchase price in installments, plus a small service fee, before taking it home. For instance, Kmart requires a $5 service fee and a $10 refundable cancellation fee upfront, or 10% of the item's cost, whichever is greater. If a customer fails to follow through, the transaction is cancelled and the customer receives a refund, less the $15. If you put these purchases on credit and don’t pay off your bill right away, your interest could be more than the layaway fee. To buy from smaller retailers, visit eLayaway.com, a website that organizes layaway services for more than 1,000 retailers nationwide. Representatives said traffic on the site almost doubled in the past year. The site charges a fee of 1.9% of the sale price. To help you boost your credit score, eLayaway.com files a report with Fair Isaac Corp. every time you pay an installment on time. Be advised: The only payment option on eLayaway.com is a direct debit from your share draft/check account, so make sure you have funds available to cover the cost of installments. The company charges a $5 fee after the first unsuccessful payment and a $25 cancellation fee after more than one failed attempt. For more information, read “Tough Times Series: Steer Clear of Credit Counseling Bad Guys” in Home & Family Finance Resource Center.
Other Resources

RSS





print
News Now LiveWire
Better economic & #CU conditions,leading to higher rates in '15,'16, will boost CU earnings, asset quality,capital http://t.co/rmJvi3MIpQ
10 hours ago
RT @CUNA: Today is the first day of #CUYouthMonth How is your #creditunion celebrating?
14 hours ago
New @FICO score metric expected this week, will include utility payments http://t.co/l0hGhilMqQ
15 hours ago
.@TheNCUA increased supplier diversity in 2014 by 49%, although NCUA’s workforce diversity levels declined slightly.
15 hours ago
Also from FFIEC today, council announces reappointments of Mary Hughes and Lauren Kingry to its State Liaison Committee. 2of2
15 hours ago
150x172_Sign up for election newsUnite for Good Share your Stories100 Million CU Memberships