Lay-by has taken off as a payment option in the last year or two, according to consumer journalist Wendy Knowler.
Formerly mainly used by lower-income consumers who relied on it to pay off furniture or clothes, it’s now gone mainstream among those earning higher incomes, especially those with poor credit records.
Nowadays, many upmarket boutiques offer lay-bys.
With lay-bys, shoppers choose an item and pay it off every month without interest.
They get to take home whatever they bought once they’ve paid in full.
No credit checks are needed.
Consumers may cancel a lay-by at any time.
A shop must refund them in full – credit notes are not allowed - minus 1% of the retail price as a cancellation penalty.
For more detail, listen to the interview in the audio below.
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