Lay-bys |
A lay-by is an agreement between your business and a consumer, where you:
- agree to hold the goods at a set price until the consumer pays in full
- do not charge interest on the outstanding debt.
Terms and conditions
When you establish a lay-by agreement with a consumer, ensure they know all the terms and conditions.
Agreements must be in writing and should contain:
- a description of the goods
- the transaction date
- a unique lay-by transaction number or identifier
- the total price
- the amount of any deposit paid
- the maximum length of the lay-by, and the date the final payment is due
- cancellation and refund policies.
Keeping records
Make sure you keep up-to-date records of all lay-by transactions to prevent any misunderstandings.
The record should include:
- the consumer´s name, address and phone number
- a description of the goods
- the transaction date
- a unique lay-by transaction number or identifier
- details of the deposit and payments made.
Each time the consumer makes a payment, give them a receipt and record it on a record slip for the consumer. This helps them keep track of their lay-by and remember when payments are due.
Cancelling a lay-by agreement
If the consumer does not meet the conditions of the lay-by agreement, you can cancel it by following the procedure set down in the agreement.
If the consumer cancels the lay-by, or fails to meet their obligations under the agreement, you may charge a termination fee. However, the termination fee can only be an amount that covers your reasonable costs, and you must return the balance to the consumer. If payments made by the consumer to date do not cover your reasonable costs, you may recover the outstanding amount as a debt.
You can´t cancel a lay-by agreement unless there are circumstances outside of your control. For example, you can not simply decide to withdraw the goods from sale.
Last reviewed 28/11/2011 |
 |
