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9 March 2015

Layby fee refund

The Warehouse is refunding a layby administration fee.

The Warehouse is refunding an administration fee it charged to customers who started a layby with the company between 17 June 2014 and 19 January 2015.

Changes to the Fair Trading Act that took effect in June made it clear retailers could not charge consumers a fee to set-up a layby sale. However, some retailers have still been doing so. In January, we reported on a $30 layby fee that had been charged by Bike Barn.

The Warehouse was charging a $2 fee. The company said it dropped the charge on 20 January and will be posting notices in its stores to let customers know they’re entitled to a refund. It said customers who had yet to collect their layby purchase would receive a refund when they picked up their goods.

Layby remains a popular way to buy goods, particularly among young people. If you’ve been charged set-up fees for a layby, you’re entitled to a refund. The only time retailers can charge a fee is if the layby is cancelled. Any cancellation charge must be spelt out in the layby agreement and must not be more than the retailer’s reasonable costs.

See our Layby sales article for more information about your rights when you put goods on layby.

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