What Happens When Your Layby Expires?

Lay-by agreements remain popular in South Africa, especially for clothing, furniture, and electronics. But many shoppers are uncertain about what happens when your layby expires. Understanding the Consumer Protection Act (CPA) and retail store policies can help you protect your money and avoid disappointment.

What Is a Layby Agreement?

A lay-by is a purchase method where you pay for goods over time, without interest. The retailer keeps the goods until you complete payment. Lay-by periods usually run for three to six months, depending on the store.

Looking for sustainable bathroom solutions? Read our feature on Farewell to Toilet Paper: Eco-Friendly Toilet Paper Alternative.

Why Do Laybys Expire?

Lay-bys expire when customers do not finish payment within the agreed time. Retailers cannot hold stock indefinitely, so expired agreements protect them from losses.

Can a Store Cancel Your Layby?

Yes. According to Section 62 of the CPA, a retailer may cancel a lay-by agreement if the customer fails to pay by the expiry date.

Do You Lose Your Money Completely?

No. The CPA protects you from losing all your money. When your layby expires, you should receive a refund of your payments. However, the retailer may deduct a reasonable cancellation fee.

How Much Is the Cancellation Fee?

The law allows only a reasonable fee, not a penalty. Stores often charge between 1% and 10% of the lay-by value. If you believe the deduction is unfair, you can lodge a complaint with the National Consumer Commission.

What Happens to the Goods?

Once the lay-by expires, the goods return to the store’s stock. You lose the right to claim them. Special orders or customised products may result in higher deductions, as these items are harder to resell.

Want to stretch your budget? Discover the Grocery Store With Lower Prices Than Checkers and Pick n Pay

Do Retailers Notify You Before Expiry?

Many reputable stores, such as Game or Edgars, send SMS reminders before expiry. However, not all retailers are legally required to give notice. Always track your payment schedule to avoid losing your items.

Can You Extend a Layby?

Some retailers allow extensions if you contact them before expiry. Always negotiate in advance. Retailers such as Ackermans and Foschini sometimes grant extensions for loyal customers.

Refund Process After Expiry

Refunds are usually issued within 7–14 business days. Stores may refund via EFT, cash, or store credit. Keep your receipts to speed up the process.

Which Stores Offer Laybys in South Africa?

• Game and Makro: Three-month lay-by periods, refunds with deductions.
• Edgars and Foschini: Six-month lay-bys, refunds minus small admin fees.
• Pick n Pay Clothing: Flexible lay-bys, cancellation fees deducted. Check the specific terms on each retailer’s website or in-store policy documents.

What Happens When Your Layby Expires?: Consumer Rights Under the CPA

The Consumer Protection Act gives you the right to:

• Cancel a lay-by agreement before expiry.
• Receive a refund of payments, minus reasonable fees.
• Dispute unfair charges via the Consumer Goods and Services Ombud.

Planning a shopping trip? Explore Gauteng’s Biggest Mall: Top Shops, Dining & Attractions for the ultimate retail and leisure experience.

What To Do If You Miss a Payment

If you realise you cannot pay on time, contact the store immediately. Many retailers prefer keeping a customer than cancelling the agreement. Proactive communication can save your lay-by.

When your lay-by expires, you lose the goods, but you should receive a refund after a small deduction. Understanding your rights under the CPA helps you avoid unfair treatment. Always monitor your payments and keep proof of transactions.