Kmart says that since my husband didn't pay a FULL MINIMUM amount last week our layaway can be canceled (we were not informed before); is this legal?
Question Details: Two weeks ago my husband and I put some Christmas items in layaway at Kmart; we paid the down payment as asked and were told when the next payment was due and the amount of next payment but were NOT told that if we didn't pay the full minimum amount shown that our layaway could be canceled. We know that the basic requirement is to pay some at least every two weeks but Corporate says that the contract states that we MUST pay the minimum in full by the payment date; the portion of the contract we have does not state that. Is this legal since we were not informed?
Business Law Answers
You and Kmart both are bound by the terms of the contract. If it says--even in the small print--that you have to pay at least the minimum, you have to; if it doesn't, the store cannot hold you to a term that was not in the contract.
Ask the store to point out where, in the form of the contract you received, it states you must pay at least a certain minimum. If it does not, you should inform the store that if they do not honor the contract as it is written and was presented to you, you will contact the state AG and the better business bureas and lodge complaints. (You also have the option of suing to enforce a contract; small claims court would probably be a good option.)
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