Layaway has become increasingly popular with the challenging economic times. Many find it very helpful during the holidays to be able to spread payments over a period of time, but putting an item on layaway may result in a loss of money or the item itself if you don’t read the contract carefully, warns BBB

BBBs around the country have received complaints in the last year from consumers whose layaway purchase did not turn out the way they anticipated.

Consumers mainly place furniture, toys and jewelry on layaway and do so at a variety of stores, including national chains, local retailers and pawn shops.

“It’s important to know the policies up front. For instance, a lot of items might not be eligible for layaway on big sale days so call the store before you head down and stand in line on Black Friday, ,” said Kim States, BBB President. “Also, the worst thing that can happen with layaway is the company going out of business. So be sure to only sign up with a reliable retailer.”

BBB suggests that consumers consider the following when using layaway this holiday season:

How long can the item be on layaway?

It’s important to know that some items have a time limit and once that time is up, the item is returned back to the store for someone else to purchase.

Will the item be placed in a hold area until all payments are made?

If the item is not held for you, it may be inadvertently sold to another customer.

Is there a specific date when each payment must be made?

The contract may specify when payments must be made and that, if a payment is not made by that date, the layaway item can be sold to another consumer.

What is the company’s refund policy?  Is there a restocking fee?  Will only a store credit be issued?  Are no refunds available? 

Consumers report not being able to obtain a refund or a store credit if they change their mind about buying the item put on layaway.  In addition, complaints state that restocking fees of 10% or more are often charged.

When putting a product on layaway that is not in stock, is the product ordered when the layaway is opened or when the last payment is made?

Consumers report that even after the last payment is made the product is not available, and sometimes is delayed for weeks or months. Consumers also report that after the last payment, delivery has been delayed due to other consumers having their delivery dates scheduled before layaway customers.

For more tips on how to avoid scams and make wise purchasing decisions this holiday season visit www.tucson.bbb.org/bbb-news.

Small Business Saturday is a day dedicated to supporting small businesses on the busiest shopping weekend of the year. Better Business Bureau of Southern Arizona is spreading awareness and advising consumers to support the small businesses in Southern Arizona.

For the third year in a row, American Express OPEN has declared Nov. 24, the Saturday after Thanksgiving, to be Small Business Saturday. BBB is one of hundreds of public and private organizations to declare its support for Small Business Saturday, in an effort to spread the word about the benefits of shopping at local businesses.

“Shopping local is really what makes a community what it is, especially in the way of employment and taxes,” said Jeremy Davis, co-owner of Summit Hut, in Tucson. “For every dollar that’s spent at a local store 68 percent of that goes to the local community through taxes and payroll.”

Davis, who owns Summit Hut with his wife Dana, are one of 80 small businesses in Tucson that will be participating in Small Business Saturday.

Last year, more than one hundred million people came together to Shop Small in their communities on Small Business Saturday. Whether you’re a small business owner or a customer, you’ll want to encourage your friends to Shop Small on Nov. 24.

For more information on Small Business Saturday, visit smallbusinesssaturday.com and for more consumer information you can trust, visit www.tucson.bbb.org.

Consumers who let down their guard during the hectic holiday season can easily fall prey to scammers poised to pounce on careless or overburdened shoppers, Better Business Bureau of Southern Arizona warns.

BBB has identified five common scams that consumers should watch out for during the holidays, whether they’re shopping online, juggling packages at the mall or simply reading their email.

“While the rest of us are checking off items on our gift lists, scammers are blowing the dust off of their tried and true holiday scams,” said Kim States, BBB President. “By being vigilant, consumers can help turn holiday scams into ghosts of Christmases past.”

1. Online shopping scams: Everyone loves a great deal, but some websites offer electronics or luxury goods at prices that are too good to be true. Every holiday season, BBB hears from holiday shoppers who paid for a “great deal” online, but received little or nothing in return.

BBB advice: Always look for the BBB logo when shopping online and click on it to confirm that it is legitimate. If you’re shopping on sites that aren’t household names, check out their BBB Business Reviews at www.tucson.bbb.org. Confirm that the company has a physical address and telephone number.

2. Nabbing the season’s hottest toys and gadgets online: When stores sell out, you may find the items online at sites like Craigslist or eBay— but for a much steeper price.  Some sellers will take your money and run, leaving you without the gift or money to buy it elsewhere.

BBB Advice: If you shop Craigslist, look for local sellers and conduct transactions in person. Bring a friend if you’re uncomfortable meeting the seller alone. Never wire money as payment. If you’re (more…)