Posted on 11/14/2011 2:47:07 AM PST by EBH
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.
He said if stores don't better present the cost of layaway purchases, he will ask the Federal Trade Commission to determine whether the increasing use of layaway is a deceptive or misleading business practice. Historically, stores started dropping layaway plans in the 1990s in part because of these costs and inconveniences.
But it's wrong to compare layaway fees to credit cards and the fees are already clear, a major retail association says.
"It is a leap to suggest that $5 on a $100 purchase is twice the going rate on credit cards, which today averages 14.99 percent nationwide," said Brian A. Dodge of the Retail Industry Leaders Association.
"Layaway is not credit, period," Dodge said Sunday. "Layaway programs provide consumers with a responsible, low-cost alternative to credit cards that allow customers to buy an item that they want but the flexibility to pay for it over time without accumulating debt.
(Excerpt) Read more at news.yahoo.com ...
What business does Washington DC have with layaway plans? These JERKS will stop at nothing to rule every single aspect of our lives if we do not do something to stop them...SOON!
Surely Chuckie has better things to do than worry about layaway programs. But, I suppose this will get his ugly mug on TV for a few minutes under the guise of doin sumthin for the people.
The Schumckster’s owned by the credit card companies.
I am so ready to get these fools out of office. Can he really be so stupid as to think a $5.00 fee unreasonable?
Has the man never used a layaway program?
Can they really be this stupid and ignorant as to not understand a layaway program?
no interest,
no overspending,
no excess shopping sprees
plus layaway actually keeps the consumer on budget?
And actually creates ‘time’ for the family as the gifts are already bought months ahead of time.
yes i am yelling!
DITTOS
Here they are encrypted. 2@#$%^&*%$##&%$$ and $%$#$% and %$*%#@@##
He’s an ASS.
I am so with you, but I disagree that they are fools. They aren’t fools. They’re totalitarians who think they have the right to do whatever they please. It doesn’t matter if what they propose is a good idea or not. Washington DC has no moral or legal right to tell every American how to live. We are supposed to be free people, not slaves to their whims. Again, it doesn’t matter if even a majority agrees with the totalitarians. We have a constitution to (supposedly) protect political minorities from majority oppression. I’m sure some would say it’s “criminal” to charge someone $5 for a layaway plan, but I say it’s “criminal” for Washington DC to set regulations for layaway plans that have absolutely zero to do with interstate commerce. If they can control us down to something as small as this, I ask you. Where in the world does their power end???? And, yes. I’m yelling too.
First thing I see on Free Republic while my tea is steeping is this ... Inane Cr*p. I haven’t had the need to use Layaway for some years now. But if I remember right the fee was for the entire purchase being laid away to pay for the warehouse space being utilized by the customer.
As far as credit cards go... The current interest rates are insane. Cash only has been my motto for several years now.
The winner. $5 plus cost is the total fee. How the Schmuck comes up with his figures is beyond me. Any money paid aftet the $5 goes 100% to the cost of the items. What part of a minimum of 10% to place an item in lawaway does he not understand. It is not 10% interest it is 10% toward principle or cost of item. That is simply to discourage someone from overspending. Generally most persons have 10% of their layaway purchase price on them. Layaway has worked in this manner for decades.
no overspending,
no excess shopping sprees
plus layaway actually keeps the consumer on budget?
And the biggest benefit, NO minimum payment which keeps you paying interest indefinitely.
They are “nudging” us into a cashless society. Easier to control us if we are forced to use credit cards. Our needs will be rationed. Remember the lines for bread (and everything else) in the USSR? That’s coming here.
Considering the amount of interest and possible over-limit or late fees, $5 is cheap! Besides, if that’s the arrangement I want to make, that’s between me and the store.
When I first heard this story yesterday, it dawned on me that the best thing we could do as a nation, is give these communist control freaks, more vacation.
Like, maybe 50 weeks a year.
The problem with “lawmakers” is, they always make more laws.
Never. Ever. For any reason, to they remove any old laws, they just keep making more. Eventually we as a nation will have no freedoms left.
Because of “lawmakers”. We have too many laws already.
Give them all the year off.
And the layaway fee and the 10% down also prevents people from putting items on layaway and never coming back for them.
There is a cost to retailers to have layaway programs, that being items taken from the shelves but still remaining in inventory and taking up valuable space in the store’s backroom.
I guess he hasn’t pumped gaoline recently! Maybe he should take a look at how the consumer is getting screwed by all of the government taxes while he is at it. What a dumb arse. This was just an easy pick the low life.
I am sorry to spoil your morning tea.
I was reading this story while listening to a financial planner discussing, how people are still paying off the credit cards from last Christmas.
I sure wish there was a way that you could get these people on the phone and YELL AT THEM! I am tired of speaking to their aides.
Phone, fax, march, protest, wave signs in their faces and they still ignore...whatever that thing is in DC...it is not government of the people.
Ditto, therefore I put them in binary:
01100110 01110101 01100011 01101011 00100000 01111001 01101111 01110101 00100000 01100011 01101000 01110101 01100011 01101011 00100000 01110011 01100011 01101000 01110101 01101101 01100101 01110010 00100000 01111001 01101111 01110101 00100000 01110000 01101001 01100101 01100011 01100101 00100000 01101111 01100110 00100000 01110011 01101000 01101001 01110100 00001101 00001010
LOL...
Schumer just is my freakin’ last straw. Between the Christmas tree tax and now Schumer freaking out over a $5 layaway fee....I’m done.
It is time to drop out of this thing called the American society. If I don’t want debt in my Christmas, it ain’t none of the dang governments business how I choose to avoid it.
It is time to shut off the debt tap to the government, drop all the debt issues, get off the grid ....
I have to guess that “Chucky” thinks that these stores have thugs with whips and clubs, driving customers to the layaway counter in droves.
You just gotta love the absolute lack of common sense.
First, if you can’t afford it don’t buy it. Second, if you can’t afford it charge it on your up to the limit credit card, and finally, Third, If you can’t afford it lay it away, bend over and take the financial punishment.
That’s freedom to choose.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.