Layby

Under $300: 20% deposit and 4 weeks to pay

Between $300 - $600: 20% deposit and 6 weeks to pay

Above $600: 20% deposit and 8 weeks to pay

How to process the Layby?

1. Download the Layby Form, print and fill up the form.

2. Email us the form with your signature (not electronic signature), as well as your Identification Copy.

********************************************

What is a layby? A layby is an agreement between a consumer and a trader (e.g. a retailer) in which you pay for goods in two or more instalments, and the retailer holds onto the goods until you have paid off the amount owing on the goods. You don’t own the goods until you have made the last payment. In a layby sale you should not have to pay any interest or other fees (except perhaps a storage fee in some cases). From 17 June 2014, the definition of a layby sale is defined as an agreement between a consumer and a trader (e.g. a retailer) in which:

goods will be supplied to the consumer but the consumer doesn’t take possession of the goods until an agreed portion of the price has been paid, and
payments are to be made in three or more instalments (2 or more if the agreement specifies that it’s a layby sale) and · the price is less than the upper limit for Disputes Tribunal cases (currently set at $15,000)
no interest charges or credit fees are charged to the consumer (otherwise it is effectively a credit contract)

********************************************

What are my rights when I buy something on layby?

Layby sales which were made before 17 June 2014 are covered by the Layby Sales Act 1971. This Act does not cover part payment arrangements for vehicle sales, services, or sales worth more than $7500. Under the Layby Sales Act 1971 the retailer must hold the goods for you until you complete your instalments (they can’t sell the goods to someone else). If the retailer puts up the price of new stock of the same goods, they can’t increase the price of the goods held on layby.

Layby sales made on or after 17 June 2014 are covered by the Fair Trading Act (FTA), which incorporates the provisions that were set out in the Layby Sales Act and gives you additional protection. For layby sales agreed to from 17 June 2014 the retailer must give you a copy of the layby agreement when you purchase the goods. The agreement must be easy to understand and include the following information:

On the front page:

o a clear description of the goods,

o a summary of your right to cancel,

o whether a cancellation fee will be charged and how much (if it is not a fixed amount, how the fee will be calculated),

the total amount payable
the date of the agreement

The cancellation fee can’t be more than reasonable costs that would be incurred as a result of the cancellation e.g. if the goods have lost value since the start of the agreement then the fee could be the amount equal to the loss in value. Other reasonable costs include the cost of storing and insuring the goods during the layby period, and administration costs associated with the agreement.

You can ask for a free written statement at any time, which tells you:

The total amount payable
How much you’ve paid so far
The cancellation charge to date, if any
How much is outstanding, if any, and how that amount is to be paid

If you request a written statement, the trader has to give it to you within five working days. Until you take possession of the goods, the trader is responsible for looking after them.

I put something on lay-by and have paid a couple of instalments but have changed my mind. Can I cancel and get my money back?

You are entitled to cancel a layby agreement at any time before you actually take possession of the goods. You can cancel in any way which clearly shows you wish to cancel the agreement (unless you’ve agreed to communicate this in a particular way). You are entitled to a refund of the money you have put down on the item (minus any cancellation charge) and are entitled to get the money back in cash. The trader is allowed to charge you a cancellation fee as long as:

the charge is in the layby agreement and
you were the one who cancelled the agreement and
the trader did not breach the agreement

The cancellation fee is meant to cover selling costs or loss of value. Selling costs include things like storage costs and staff time to write receipts. The amount charged must be reasonable, including only the actual costs incurred by the seller for your lay-by. Loss of value means any drop in the retail value of the item because, for example, the item is no longer in season or a newer model is now available. Usually loss of value can't be claimed if the lay-by agreement is cancelled within one month.

If the amount of your installments is less than the selling costs and loss of value, the seller can keep your money but they cannot ask you for any more. The Commerce Commission website provides more information about lay-by purchases and cancellation of lay-by agreements.

Note that the rules for cancellation and refunds for goods bought on credit are different from those which apply to goods bought on lay-by. Read our Consumer credit purchase page if you need information regarding cancellation and refunds for consumer credit transactions.

Can the shop cancel my layby agreement?

A retailer can cancel a layby in the following circumstances:

The consumer has breached a term of the agreement (e.g. by not paying installments as agreed)
The goods are no longer available, due to circumstances beyond the trader’s control, and they can’t reasonably get hold of an appropriate substitute · The trader has ceased trading due to bankruptcy, receivership, liquidation or voluntary administration. See the next question for what you can expect in this situation.

If the retailer cancels the layby they must tell you (by phone, in person or in writing). For laybys taken out on or after 17 June 2014, if a shop cancels a layby due circumstances beyond its control (e.g. the item was stolen in a burglary and a suitable replacement isn't available) then the shop can't charge a cancellation fee. A shop can charge a cancellation fee if they cancelled the layby agreement because the consumer has breached a term of the agreement - as long as this information about the cancellation fee is in the layby agreement.

I put something on layby and now the company has gone out of business. What can I do?

If a company goes out of business then the goods you have on layby will become part of the assets in the bankruptcy, receivership, liquidation or administration. If your payments are up-to-date, you have the right to pay for and collect your item. If the seller is not able to give you your lay-by item because they do not have enough stock left, then they will owe you money.

If your payments are up to date but you aren’t able to complete your layby, then you are entitled to be refunded any money you’ve already paid. You will need to contact the company's receiver or liquidator to register your claim for the item or the money you are owed. Put your claim in writing, providing evidence of what you are owed, for example a receipt. Although as a lay-by customer you have priority over some other creditors (such as unsecured creditors) when a company goes out of business, there is no assurance that you will actually get your lay-by item or your money back.

Who do I complain to if I have a problem with my layby agreement?

If you find that the goods are damaged when you collect them, you have the right to cancel the layby and get a refund. If the goods are damaged then under the Consumer Guarantees Act you are entitled to ask the retailer to give you a suitable replacement or get the goods repaired at no cost to you. If you aren’t able to get a satisfactory resolution from the retailer, you can make an application to the Disputes Tribunal for a decision. You can report the retailer to the Commerce Commission if the problem is with the layby agreement itself, e.g. the retailer did not disclose the right information to you at the time of the sale or mislead you about your rights, While they can’t advocate on your behalf, the Commerce Commission can investigate a retailer and take action against them.

********************************************

Layby Terms, agreements and contract

Idiya Ltd trading as www.idiya.co.nz has identified core principles we believe are integral and imperative for all Lay-Buy agreement deals transacted through our PUT IT ON LAY-BUY powered by PayPal checkout payment option to be fair and reasonable per the Fair Trading Act 1999.

The following principles below therefore make up the Terms & Conditions for any Lay-Buy or Layby contract and related transactions entered into. This applies to all and any lay-by contract template utilized by both the vendor or consumer:

1. Record of Payment

A record of payments transaction history will always be available for both the merchant and buyer, recording all amounts paid to-date and the date and value of all future pending payments as per your agreed lay-by policy.

2. Storage and Identification of Lay-Buy Products

Product’s on Lay-Buy will be set aside and stored separately to other products. Products will be clearly identified as ‘Lay-By contract’ products by a number or some other identification.

3. Cancellation of Lay-Buy by Buyer

The buyer may cancel their Lay-buy agreement form at any time prior to delivery of products and on delivery of products if the products are damaged by so advising seller in writing or if seller agrees, orally. If a buyer cancels a Lay-Buy, seller will, if so requested by the seller, give the buyer a “cancellation statement” which sets out- a) The purchase price of the products; and b) Advise customer of the cancellation fee payable to seller under all Lay-By terms and conditions; and c) The total amount paid under the Lay-Buy; and d) Any amount owing to either the buyer or seller under the layby terms on the cancellation of the Lay-Buy. If seller does not accept the buyer’s oral cancellation it is obliged to give/send the buyer a duly completed Lay-By Form of Cancellation immediately.

4. Cancellation of Lay-Buy by Seller

The seller under a Lay-Buy must not cancel it unless – a) The buyer breaches a term of the Lay-Buy; or b) The seller stops trading; or c) The products are no longer available

5. Cancellation on breach by Buyer

If a buyer has breached a term of a Lay-Buy and seller intends to cancel the Lay-Buy,

before doing so seller must – a) Give the buyer notice of seller’s intention to cancel the Lay-Buy; and b) Allow the buyer at least 14 days within which to rectify the breach; and c) The notice to be given has to be:

6. I) in writing, sent to the buyer’s last known address, or, if the buyer so agrees, orally; and II) must specify the breach of the Lay-Buy for which the Lay-Buy is being cancelled; and III) must state the time within which the buyer must rectify the breach; IV) must state the matters listed per below:* the purchase price of the products; * all cancellation charges payable under the agreement; and * the total amount paid under the Lay-Buy; * any amount owing to either the buyer or seller under the terms of the Lay-Buy on the cancellation of the Lay-Buy. The Lay-Buy is cancelled at the end of the period specified in the notice unless the buyer rectifies the breach before then or Seller agrees not to cancel it.

7. Cancellation where business closes

If Seller under a Lay-Buy agreement proposes to stop trading before the agreement is completed, Seller must give notice of the proposal to the buyer and must either – (a) allow the buyer 7 days within which to complete the agreement; and (b) cancel the Lay-Buy

8. Cancellation where products not available

If the products are no longer available, Seller must cancel the Lay-Buy and refund all monies to the buyer.

9. Effect of Cancellation

Subject to the above, when a Lay-Buy is cancelled by either party, Seller must refund all money paid within 14 days less a NZD $25 cancellation fee. There are circumstances which prohibit Seller from keeping the cancellation charge. These include but are not limited to, situations where the products are damaged or not delivered or where Seller has breached a term of the Lay-Buy statement.

10. Cancellation Charge

Seller shall charge the buyer a NZD $25 cancellation fee under the terms of all Lay-Buy deals.

11. Banking Charges back Fees

The seller shall be entitled to pass-on to the buyer all charge back fees received by any given bank for any given customer charge back from any given Lay-Buy deal.

12. Service Fee

Seller shall not charge the customer any interest charges, membership fee or service fee on any Lay-Buy sales transaction. Lay-Buy Financial Solutions Pty Ltd trading as www.lay-buys.com charge an admin fee, which is a once-off 0.9% of the total order value at checkout. The buyer will pay this amount to Lay-Buys at checkout at time of paying the down payment. This fee is an admin fee and is therefore not refundable.

13. Lay-Buy Reporting

Seller shall have reporting in place for all Lay-Buy deals covering Down Payment made, Lay-Buy period, Frequency of payments required, Payment amount required per installment; and a full record of all payments made to-date (amount and date on which made).

14. Delivery

The seller will only dispatch the buyer product/s after receiving the final installment payment for all Lay-Buy deals.

15. MISCELLANEOUS

14.1 This Agreement shall be binding upon, inure to the benefit of, and be enforceable by the representatives, successors and assigns of the parties hereto. 14.2 This Agreement may be amended only by a written instrument duly executed by all parties hereto. 14.3 The parties hereby represent and warrant that each of them has full legal right, power and authority to enter into this Agreement and to carry out its obligations hereunder. 14.4 This Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 14.5 Article headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.