A 'lay-by' is essentially a contract between you and a retailer where you pay for goods over a period of time rather than upfront. In most lay-by agreements, you pay an initial deposit, followed by regular repayments. The goods are held by the retailer until you have paid the full price of the goods.
Below you will find anwers to some of the most commonly asked questions about lay-bys, including who to contact if you have concerns.
Each lay-by agreement is different, so check that you understand what you are agreeing to before you make your purchase. If you are in any doubt about any of the terms or conditions, ask for an explanation.
What should the trader tell me about my lay-by?
In any lay-by contract, the following details must be clearly specified:
full description of the goods purchased
the total price of the goods
the amount of deposit payable and the amount of the outstanding balance
when the repayments are due
if any cancellation fees apply and how they are calculated
the trader’s details such as the name and street address
any other terms or conditions.
Can I cancel my lay-by agreement?
As a lay-by is essentially a contract, don't expect to be able to cancel your lay-by without being charged a fee if you simply change your mind. Most stores will have their own policy about lay-by cancellations fees. Check the terms and conditions of cancellation in your lay-by contract.
If you are having difficulty meeting your repayments, discuss this with the store manager. You may be able to negotiate a new repayment plan or extend the term of your lay-by.
Can I return/exchange or get a refund for the lay-by goods?
Goods that you have purchased on lay-by are subject to the same sorts of conditions for return or exchange as goods which you are purchased under normal sale arrangements. You are not entitled to a refund or exchange if you simply change your mind, and you are not entitled to pay a reduced price if the goods you have on lay-by go on sale before you have completed your lay-by.
What if the lay-by goods are damaged or faulty?
Whether you make your purchase up-front or on lay-by, there are certain statutory conditions and warranties implied into your purchase to provide you with a basic level of protection. This means that if the goods you have bought under a lay-by arrangement are damaged when you collect them or defective, for example, you may be entitled to a refund, exchange, or to have your goods repaired. Our page on Warranties, guarantees & refunds explains your statutory rights in more detail.
Who should I contact if I am concerned about my lay-by?
If you have concerns about the terms or conditions of your lay-by which you are not able to resolve with the retailer, contact the office of fair trading in your state or territory. The legislation covering lay-by arrangements and contracts varies between different states and territories. Search our Consumer & business directory for the contact details of your local office of fair trading. (There is a link to the directory in the menu on the left).
