Sample Layaway Agreement

Retailers use a number of refund guidelines for Layaway transactions. Some give cash refunds, in whole or in part, if the layaways are not completed. Others make credit for future purchases. State law may prescribe the refund policy you must follow. Will it be cash or credit? Why not Layaway? For retailers that offer customers a Layaway option, this guide contains a checklist for layaway disclosure and a proof template. Companies communicate their layaway terms in different ways. Some post their Layaway conditions on a sign in their stores. Others have their layaway disclosures on Layaway`s sales documents and provide a copy to customers when a purchase is made. Some retailers use both supporting documents and signs. Some other retailers miss a Layaway completion date, especially when payments are nearing completion. As a reminder, these retailers send notifications to their customers in which they indicate a new date by which all payments must be completed.

If you have such a policy, you may want to use a note stating that your Layaway plan may be covered by the Truth in Lending Act if you ask your customers to agree in writing to make all payments until an item is fully paid. If you do not compel your customer in writing to complete the layaway purchase, the Truth in Lending Act does not apply. For more information on the requirements of the Truth in Lending Act, please contact the Federal Trade Commission. If you offer Layaways or think about it, you may find this brochure useful to avoid any misunderstandings with your customers. There are good business reasons to give written information to your Layaway customers: the following section shows how to clearly and intelligibly disclose Layaway`s important information. You can use this form to review or create your own receipt. If you have any questions about Layaways after reading this guide, write to the Correspondent Branch, Federal Trade Commission, Washington, D.C 20580, or contact the FTC regional office near you. The addresses and telephone numbers of the regional offices can be found on the back of this brochure. In order to avoid confusion about the selected product, you must identify the Layaway item on the Layaway sales document. A clear description of the identifying characteristics of the item, such as color, size, warehouse number, model number and trade name or manufacturer, can avoid any misunderstanding if the customer makes the final payment and is willing to use the Layaway merchandise…

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