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Schumer Demands Retailers Reveal Layaway Fees In Time For Holiday Shopping Season

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TWC News: Schumer Demands Retailers Reveal Layaway Fees In Time For Holiday Shopping Season
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Senator Charles Schumer is calling on major retailers to clearly state their layaway fee to customers, or else he will ask the Federal Trade Commission to investigate.

While most states cap credit card interest at 35 percent, Schumer says the interest of layaway plans can sometimes reach as much as 40 percent over a month or two.

In a tough economic climate, more retailers are using layaway plans to lure shoppers.

Retailers claim the fee helps reduce losses if a layaway plan is not paid in full and the item is not immediately resold.

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