Senator warns of layaway’s cost

I am never surprised by how low the rich and their corporations will go in exploiting the poor.

First credit cards with usurious interest rates, pay day loans, rent to own stores that sucker people in by offering a low price and then doubling the actual price with the fine print, interest and carrying charges.

Here’s a revolutionary proposition for this years annual orgy of ritualized gift giving.  Boycott the chain stores, the big box stores. Regift.  Give the gift of time or actual money.  Buy something made in the USA from an independent merchant.  Buy something used or hand made. Shop at flea markets and antique stores.

Or ask family and friends to contribute to a cause in your name.

Fuck the chain stores and the corporate masters.

Just say no to Xmas shopping.

From Yahoo News:

By MICHAEL GORMLEY – Associated Press
November 14, 2011

ALBANY, N.Y. (AP) — The return of layaway plans this holiday shopping season is raising concern that the break from credit cards might actually cost consumers far more.

For example, a rock ‘n’ roll Elmo doll that requires a $5 layaway fee and a 10 percent down payment for a month can equal a credit card that charged more than 100 percent interest, U.S. Sen. Charles Schumer said Sunday.

Schumer is asking major retail associations to direct their members to more clearly present their layaway fees to customers. The Democrat says the ultimate cost of a layaway with a $5 fee can equal 40 percent interest over a month or two for many common purchases compared to the annual rates of most credit cards.

He said if stores don’t better present the cost of layaway purchases, he will ask the Federal Trade Commission to determine whether the increasing use of layaway is a deceptive or misleading business practice. Historically, stores started dropping layaway plans in the 1990s in part because of these costs and inconveniences.

But it’s wrong to compare layaway fees to credit cards and the fees are already clear, a major retail association says.

“It is a leap to suggest that $5 on a $100 purchase is twice the going rate on credit cards, which today averages 14.99 percent nationwide,” said Brian A. Dodge of the Retail Industry Leaders Association.

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Posted in Class War, Discrimination, Economic Issues, Hard Times. Comments Off on Senator warns of layaway’s cost
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