Wal-Mart Ending Its Layaway Program

[Dionysus]

Originally Posted by xo_kathy

Mismanagement isn't always about spending your cash on booze, cars, and crap you don't really need.

My mother did exactly that when she was first divorced from my father and trying to raise two young kids while working full time. She racked up a credit card debt she couldn't afford so we could have clothes and food - silly her. (Disclaimer for my poor dad - he gave us child support. Mom was a little too proud perhaps and had him give less than required b/c she wanted to make it on her own).

So, because she couldn't (and shouldn't) get any more credit cards, she often used layaway at Kmart to get Christmas presents, school clothes, new towels and/or sheets we'd eventually need, etc.

There ARE people who use it for things they know they will need in the future - not just frivolous things. And as someone pointed out, my mom's situation is probably really similar to a lot of people in rural Arkansas who got Wal-Mart off the gorund in the first place.

But, aren't these people in the minority? Most of the people I know who are in debt, spent money and charged their credit cards on things they knew damn well they couldn't afford. These things were like expensive clothes, eating out everyday, and flatscreens. Also, some of them just HAD to live alone. It wasn't acceptable for them to live with roommates, the 'rents, or in the dorms. I knew a few people who had scholarships that paid for their room and board, and only lived there for like a semester or two.

[adpiucf]

I've never used layaway. I grew up poor. If we didn't have the money, we went without.

I'm so sad I never got a Bratz Hobag Dreamhouse....

If people live in areas that are so impoverished and poor... where they can't begin to afford basic necessities... doesn't it make sense to move somewhere where there are better job opportunities and resources?

[Dionysus]

Originally Posted by adpiucf

I've never used layaway. I grew up poor. If we didn't have the money, we went without.

I'm so sad I never got a Bratz Hobag Dreamhouse....

If people live in areas that are so impoverished and poor... where they can't begin to afford basic necessities... doesn't it make sense to move somewhere where there are better job opportunities and resources?

It costs money to move. On the other hand, instead of buying a Bratz Hobag Dreamhouse, I guess they can save money for a down payment and rental trucks or whatever.

[AGDee]

I've used their layaway for my daughter's school clothes before. She wears a size that they only get a few of. If we find 3 pairs of jeans for her and I only have the cash for 2 of them that pay period, then I put one on layaway. If I wait two weeks, there is a good chance they won't be there anymore. Since she's so hard to shop for, it has been a good option. It is also nice for sales at Christmas when you know you're getting a bonus check (also, December is almost always a 3 paycheck month for us at my work, but I don't usually want to wait until December 15th until I do my shopping).

As for using a debit card for online purchases, it's more dicey. All the protections built in for regular credit cards are not always there for debit cards. Someone gets that debit card info and you could lose every penny of cash you have. With my debit card info, you can transfer every penny I have in savings, my kids' entire savings and wipe out my checking account in one fell swoop. With credit cards, you can only be held liable for $50 if the card is stolen.

Idiot me checked my online banking from the ex'es house earlier this week. My daughter ran a spyware/adware detection program at his house the next day and called me to ask what a keystroke logger was. I changed my banking password immediately! Check with your bank on their policies. You might not be as safe as you are with a standard credit card.

[BabyPiNK_FL]

I haven't used layaway. Many of those who use it at my job ( a small jewelry kiosk #1 in the region!) don't come back and pay,but a few do. If you truly want something you can't afford, need to hide from kids, can't afford to pay for all at once, layaway is a reasonable option and I do not disagree. If you need to use it for whatever reason, it is not my job to judge you. Lord knows I'm not rich myself by any means and I may have to use it to get something expensive myself one day too despite my debit card/checking account, etc.

[valkyrie]

Originally Posted by AGDee

As for using a debit card for online purchases, it's more dicey. All the protections built in for regular credit cards are not always there for debit cards. Someone gets that debit card info and you could lose every penny of cash you have. With my debit card info, you can transfer every penny I have in savings, my kids' entire savings and wipe out my checking account in one fell swoop. With credit cards, you can only be held liable for $50 if the card is stolen.

Holy crap, you should get a better bank, or at least move some of your accounts to a different bank.

[AGDee]

Originally Posted by valkyrie

Holy crap, you should get a better bank, or at least move some of your accounts to a different bank.

That information is from the ftc website itself. You can be liable for a lot more if your ATM or Debit Card is lost or stolen than if a credit card is.

ATM or Debit Card Loss or Fraudulent Transfers (EFTA). Your liability under federal law for unauthorized use of your ATM or debit card depends on how quickly you report the loss. If you report an ATM or debit card missing before it's used without your permission, the EFTA says the card issuer cannot hold you responsible for any unauthorized transfers. If unauthorized use occurs before you report it, your liability under federal law depends on how quickly you report the loss.

For example, if you report the loss within two business days after you realize your card is missing, you will not be responsible for more than $50 for unauthorized use. However, if you don't report the loss within two business days after you discover the loss, you could lose up to $500 because of an unauthorized transfer. You also risk unlimited loss if you fail to report an unauthorized transfer within 60 days after your bank statement containing unauthorized use is mailed to you. That means you could lose all the money in your bank account and the unused portion of your line of credit established for overdrafts. However, for unauthorized transfers involving only your debit card number (not the loss of the card), you are liable only for transfers that occur after 60 days following the mailing of your bank statement containing the unauthorized use and before you report the loss.

If unauthorized transfers show up on your bank statement, report them to the card issuer as quickly as possible. Once you've reported the loss of your ATM or debit card, you cannot be held liable for additional unauthorized transfers that occur after that time.

[deltanupsigurl]

I know I'm responding a little late to this..but oh well. I actually work at walmart and in Layaway...I have been for 5-6 years..I have to say at our store in nh most of us are shocked. Plus I don't think I can count the times I've gotten the same response from customers: "it's the reason we don't shop at Target...they don't have Layaway, so that's why we do all our shopping here!!" In my many years of working there I don't quite understand where the company is coming from...yes 1/4 of all layaways are cancelled, but you still have 3/4 of them that aren't! Christmas and Back to school time are huge for us.....plus not everyone has a credit card, wants to get one, or even has the credit for it, yet this is what walmart is trying to push.

Now customers still have till Nov. 19th to put on layaways, and then till Dec 8th to pick them up by, before all stores shut their layaways down...still i wonder if they will change their minds in these next two months since only a few days after us getting the news of WM losing Layaway...another thing popped up that Target will be starting Layaways in November. I haven't seen anything yet to confirm that...but I would have to see that as a slap in the face for Walmart, since part of their excuse was "well no one else has layaway anymore, so why should we..." So if Target decides to open up Layaway again, they might want to rethink their decision. Because with that news going around, customers and even associates were saying "well if Target has layaway then I will go and shop there....because I just can't afford everything without layaway."

I guess we'll just have to wait and see this outcome. I find it interresting how some stores haven't done anything to let their customers know about this..unless they've of course heard it through the news...since today I went to my old store and mentioned it to their cashiers..and they had no clue about this, neither were there signs letting customers know about this either, unlike at my store...where I even had to rip all our new layaway signs down.

Hopefully things will work out for the best. Okay I'll stop with my babble..i felt I'd just say something. ^_^

- Jen