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Senator warns of layaway's cost
Yahoo/AP ^ | 11/14/11 | MICHAEL GORMLEY

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 ...


TOPICS: Business/Economy; Extended News; Government
KEYWORDS: layaway
The words I have for Mr. Schumer are not permitted on FR!!!
1 posted on 11/14/2011 2:47:07 AM PST by EBH
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To: EBH

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!


2 posted on 11/14/2011 2:49:54 AM PST by CitizenUSA (What's special about bad? Bad is easy. Anyone can do bad. Aspire to be good!)
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To: EBH

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.


3 posted on 11/14/2011 2:51:40 AM PST by Artie
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To: EBH

The Schumckster’s owned by the credit card companies.


4 posted on 11/14/2011 2:54:34 AM PST by Timber Rattler (Don't Tread on Me!)
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To: CitizenUSA

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!


5 posted on 11/14/2011 2:55:57 AM PST by EBH (God Humbles Nations, Leaders, and Peoples before He uses them for His Purpose)
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To: EBH
"The words I have for Mr. Schumer are not permitted on FR!!! "

DITTOS

Here they are encrypted. 2@#$%^&*%$##&%$$ and $%$#$% and %$*%#@@##

6 posted on 11/14/2011 2:58:16 AM PST by DeaconRed (My Hat Don't Hang on the same Nail to Long. I am a CAT adjuster.)
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To: EBH

He’s an ASS.


7 posted on 11/14/2011 2:58:47 AM PST by Ann Archy ( ABORTION...the HUMAN Sacrifice to the god of Convenience.)
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To: EBH

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.


8 posted on 11/14/2011 3:01:31 AM PST by CitizenUSA (What's special about bad? Bad is easy. Anyone can do bad. Aspire to be good!)
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To: EBH

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.


9 posted on 11/14/2011 3:03:07 AM PST by The Working Man (The mantra for BO's reign...."No Child Left a Dime")
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To: Timber Rattler
The Schumckster’s owned by the credit card companies.

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.

10 posted on 11/14/2011 3:04:07 AM PST by cva66snipe (Two Choices left for U.S. One Nation Under GOD or One Nation Under Judgment? Which one say ye?)
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To: EBH
no interest,

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.

11 posted on 11/14/2011 3:04:59 AM PST by sonofagun (Some think my cynicism grows with age. I like to think of it as wisdom!)
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To: EBH

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.


12 posted on 11/14/2011 3:05:37 AM PST by ryderann
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To: EBH

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.


13 posted on 11/14/2011 3:08:34 AM PST by skr (May God confound the enemy)
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To: EBH

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.


14 posted on 11/14/2011 3:10:34 AM PST by Cringing Negativism Network (Evict the unsanitary, violent occupiers. Now.)
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To: cva66snipe
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.

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.

15 posted on 11/14/2011 3:12:06 AM PST by MD Expat in PA
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To: CitizenUSA

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.


16 posted on 11/14/2011 3:12:47 AM PST by Dadofmany
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To: The Working Man

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.


17 posted on 11/14/2011 3:13:22 AM PST by EBH (God Humbles Nations, Leaders, and Peoples before He uses them for His Purpose)
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To: EBH

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


18 posted on 11/14/2011 3:30:24 AM PST by RobertClark ("Governments are instituted among Men, deriving their just powers from the consent of the governed")
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To: RobertClark

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 ....


19 posted on 11/14/2011 3:40:30 AM PST by EBH (God Humbles Nations, Leaders, and Peoples before He uses them for His Purpose)
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To: EBH

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.


20 posted on 11/14/2011 3:53:31 AM PST by DH (Once the tainted finger of government touches anything the rot begins)
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To: RobertClark
You mispelled,
"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"

It should be;

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 00000000.


So
As we say here in FR ...

There ... fixed it.


You're welcome.

21 posted on 11/14/2011 3:54:26 AM PST by knarf (I say things that are true ... I have no proof ... but they're true)
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To: EBH

If you don’t have the money for said toy then you shouldn’t purchase it. Its called being responsible with your money.


22 posted on 11/14/2011 3:54:48 AM PST by KantianBurke (Where was the Tea Party when Dubya was spending like a drunken sailor?)
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To: EBH

I guess what we need is another law or regulation, right? And little Chuckie is just the guy to give it to us.


23 posted on 11/14/2011 4:31:06 AM PST by Rocky (REPEAL IT!)
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To: EBH

I was reading this story while listening to a financial planner discussing, how people are still paying off the credit cards from last Christmas.


And this I think will be a key issue among ‘thinking’ households. This Christmas season is going to be VERY lean and in many ways I think that is a good thing. Christmas as devolved from a season of happiness and religious devotion to a mass orgy of blatant consumerism.


24 posted on 11/14/2011 4:33:09 AM PST by The Working Man (The mantra for BO's reign...."No Child Left a Dime")
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To: The Working Man

And actually creates ‘time’ for the family as the gifts are already bought months ahead of time. post 5


25 posted on 11/14/2011 4:40:19 AM PST by EBH (God Humbles Nations, Leaders, and Peoples before He uses them for His Purpose)
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To: EBH
Ask yourself, why is Schuck Fumer doing this? To drive that money back to the credit card companies which feed his bankroll.

He knows that under government regulatory control, the big boxes will simply drop layaway, many of which have only brought it back in the latter half of this decade.

26 posted on 11/14/2011 4:50:21 AM PST by StAnDeliver (/)
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To: CitizenUSA
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????

According to the self-described originalist Scalia, it is virtually limitless:

...the authority to enact laws necessary and proper for the regulation of interstate commerce is not limited to laws governing intrastate activities that substantially affect interstate commerce. Where necessary to make a regulation of interstate commerce effective, Congress may regulate even those intrastate activities that do not themselves substantially affect interstate commerce.

J.Scalia, concurring in Raich

27 posted on 11/14/2011 4:58:14 AM PST by Ken H (They are running out of other people's money. )
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To: MD Expat in PA
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.

My local Wal-Mart rents semi trailers and keeps them behind the store for layaways, that can't be cheap.

28 posted on 11/14/2011 5:19:07 AM PST by Graybeard58 (Of course Obama loves his country but Herman Cain loves mine.)
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To: EBH
We use layaway to “hold” an item we want to purchase, but not hide, in our house. My little girl is pretty good at finding things.

Still, it isn't the preferred way to buy small ticket items.

29 posted on 11/14/2011 5:21:18 AM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: EBH

Let’s have a look at the stock purchase records of everyone in the US Senate.


30 posted on 11/14/2011 5:22:33 AM PST by Eric in the Ozarks
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To: Dadofmany

Oh by the way; gasoline was $1.84 when Obama was immaculated.


31 posted on 11/14/2011 5:24:47 AM PST by csmusaret (The only borders Obama has closed is a bookstore.)
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To: RobertClark

ditto.. but I think the piece of #%%# is offended. It says Chuck is below it on the ladder.


32 posted on 11/14/2011 5:35:24 AM PST by cableguymn
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To: The Working Man

We are always lean here. door buster deals (already stocked up on 1 dollar board games) are all we buy. buy right and you NEVER have to stand in a line.

our budget for Christmas this year was a 50 dollar bill. Still have about 20 bucks left and everyone (about 20) is covered as far as I know.


33 posted on 11/14/2011 5:38:28 AM PST by cableguymn
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To: Graybeard58

My local Wal-Mart rents semi trailers and keeps them behind the store for layaways, that can’t be cheap.
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
Probably so, but wasn’t the ‘original’ concept of lay-aways that when one came to the store to pay their ‘fee’, they would inevitably spend money on something else that caught there eye?
Just like before the ‘me first’ society, if a merchant was good enough to cash your check, chances were pretty good you would spend (some of) your money in his establishment?


34 posted on 11/14/2011 5:53:39 AM PST by xrmusn ((6/98) If govt involved, the more outlandish a scheme appears, the truer it probably is.)
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To: EBH; All

That’s assuming that someone would put ONE ELMO doll on layaway.

If you spend $150 on your kids for Christmas, that $5 is actually only 3%.

GAH!


35 posted on 11/14/2011 6:00:35 AM PST by autumnraine (America how long will you be so deaf and dumb to the tumbril wheels carrying you to the guillotine?)
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To: EBH
Schumer is no mathematician. A 5$ layaway fee, if it is even based on 5 per 100, and I suspect it's based per layaway purchase and not per 100, is 5%. Trying to add any 10% down payment for the first month totally ignores that the 10% goes toward the cost of the item, thereby reducing the balance. It has absolutely nothing to do with any interest on the purchase.

Schumer is concerned with Christmas economic activity turning a huge sales month in December. This is based purely on his desire to get Obama a December bump in the economy, the same way as Christmas hiring gave Obama a bump in employment last month.

36 posted on 11/14/2011 6:07:17 AM PST by xzins (Retired Army Chaplain and Proud of It! True Supporters of our Troops PRAY for their VICTORY!)
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To: EBH
Has the man never used a layaway program?

The moron has never worked retail either. There are storage and record keeping costs. And though layaway is not a credit purchase it is indeed a time and terms purchase.

37 posted on 11/14/2011 6:36:07 AM PST by jimfree (In 2012 Sarah Palin will have more quality executive experience than Barack Obama.)
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To: xrmusn

Well in the case of Walmart if it is one of the stores with the grocery etc. too... the fee becomes part of the weekly trip.


38 posted on 11/14/2011 10:31:04 AM PST by EBH (God Humbles Nations, Leaders, and Peoples before He uses them for His Purpose)
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