Politicians love to spin events to support their argument, but sometimes it's such a stretch that it really is amusing.
Chuck Shumer is now suggesting that a $5 layaway fee that Kmart charges (in its very popular and successful program that even Walmart is copying) is tantamount to an exorbitant interest rate that needs to be examined and potentially regulated. He is distorting the fee to be an interest charge at a very high rate when it clearly is not. Customers are not charging anything. They are not using anyone else's money. Therefore it cannot be construed as an interest charge.
He says he wants more disclosure. What's to disclose? It's a fee - it's disclosed.
People who wants to select merchandise for Christmas can set it aside now for a $5 fee - for the privilege of having the store keep the merchandise for them while they are paying for it in full over time with no interest charge. They are paying just the full retail cost (unless it's on sale) plus $5. It's a convenience.
Where is the injury?
Why not focus your concerns where they can matter - like taming the EPA or reducing taxes?
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Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Podcaster, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.
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