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L ay-by agreement setbacks

By unknown | Jul 04, 2007 | COMMENTS [ 0 ]

Two years ago Priscilla Teboho wanted to refurbish her mother's home.

Two years ago Priscilla Teboho wanted to refurbish her mother's home.

But because she did not qualify for a home loan, she approached Russniak Trading to lay-by some building materials.

Teboho said she entered into two lay-by agreements with the company for the building materials.

Upon paying her final instalment, Teboho asked the company to keep the materials for her until she found a builder.

"They agreed to store it for me at no cost at all," said Teboho.

But when she decided to collect her materials two weeks ago, her salesman demanded a further R5000, claiming the prices of building materials had gone up.

"I am not buying anything, all I want is the building materials they had kept for me," said Teboho.

Teboho said she was left with no option but to complain to Consumer Line, which took up the complaint with Russniak.

After this, the company agreed to deliver her building materials at no cost.

l A lay-by agreement means that the seller enters into an agreement with the consumer to keep the goods for the client for up to six months until he pays in full.

l A lay-by agreement must be in writing and signed by the seller and buyer.

l The purchase amount must be stated and the deposit stipulated.

l The time in which you agree to pay off the full amount must be stated and must not be longer than six months.

l You can cancel the agreement and are entitled to a refund of at least 90percent of the money you have already paid to the seller.

l If the period you agreed on to pay off the full amount has expired, and the seller is for some reason unable to give you the goods you have paid for, you can demand a refund and 10percent interest a year.

l The seller cannot sell your goods to anyone else during the existence of the agreement and cannot change the purchase amount or demand that you pay for storage.


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