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Department of Justice and Community Safety

INFORMATION FOR CONSUMERS ABOUT
LAY-BYS

A lay-by is an agreement to purchase goods by paying for them by instalments.

The Lay-by Sales Agreement

When making a lay-by you should receive from the trader a copy of the written contract containing all the relevant terms and conditions.

At the same time the trader must also give you:

  • a sales docket containing a detailed description of any goods purchased, the price of those goods, and any storage charges; and
  • a copy of the Schedule to the Act containing a summary of the rights of the purchaser under the provisions of the Act.

Once a lay-by sales agreement has been made, the trader must label the goods and set them aside. The trader must ensure the goods are stored in an appropriate place and manner to guarantee they are not damaged or spoiled while in storage.

Goods not in the Trader's Possession

The trader must have the goods in his/her possession at the time a lay-by sales agreement is made. Where goods are ordered in, and are subject to a lay-by sales agreement, the time for payment does not commence until you have actually inspected and approved of the goods.

The trader may request a deposit of not more than 20 per cent of the total value of the goods prior to ordering the goods. The payment arrangements agreed to in these circumstances cannot begin until the day the purchaser inspects and approves the goods.

Cancellation

You can cancel a lay-by at any time. You must give written notice to the trader, in line with the terms and conditions.

You are entitled to a refund of the money already paid less:

  • pro-rata storage fees as outlined in the lay-by sales agreement;
  • actual costs involved in having the lay-by; or
  • any loss in value of the goods.

These fees and charges must be stated in the original lay-by contract.

The trader cannot charge you for any other fee, for example a flat rate 'cancellation' fee of 10%.

Cancellation by the Trader

The trader may terminate the lay-by agreement if you fail to keep up instalment payments. The trader must give you at least 14 days written notice of the cancellation at your last known address.

The cancellation notice must include:

  • a statement of the amount already paid;
  • the amount the purchaser must pay to obtain the goods; and
  • the costs that will be incurred if the purchaser does not complete the agreement.

These costs are the same costs that can be imposed where you cancel the lay-by.

Once the trader cancels the lay-by, they must provide a refund of all moneys paid minus those set out when a consumer cancels the contract.

INTERNET SHOPPING

Shopping through the Internet can provide you with a convenient, economical and quick way to access products from around the world.

In most cases you have the same rights when Internet shopping that you do for personal shopping. In reality however, returning and exchanging goods is far more complex then returning them to a local store.

Things to be cautious about:

  • the terms and conditions attached to any purchase through the site
  • hidden charges such as packaging, handling and freight
  • delays in deliveries
  • security and safety of customer details
  • refund, return and exchange policies
  • poor quality goods that may not work, or may be illegal in Australia
  • the absence of a physical address or phone number
  • currency conversions, taxes, charges and customs duties can make an overseas bargain expensive by the time it arrives
  • ensure the site generates standard documentation (tax invoice, receipt etc)
  • unsolicited offers and contact arising from becoming a customer

Always remember, take your time and shop at your own pace.

CONSUMER CREDIT CODE

The Consumer Credit Code provides uniform regulation of most personal credit transactions in Australia including credit cards, personal loans and home loans.

What Does the Code Do?

The code presents credit information in a standard way. Credit providers must tell you what your rights are in any credit transaction. Typical credit providers include:

  • banks;
  • credit unions;
  • building societies;
  • finance companies; and
  • businesses.

All relevant information about your credit arrangement must be in writing. This includes interest rates, fees, commissions and other financial information.

Flexibility

If a person loses their job or becomes ill, they are able to ask for a contract variation so that repayments can still be met.

Credit providers are required to be careful not to make contracts with consumers who would find it difficult to meet their repayments. A court may order changes to a contract if it is considered unjust.

Protection

Credit providers cannot attempt to repossess or seize your goods without giving at least 30 days notice that they intend to do so. In some circumstances they must obtain a court order.