Lay-bys: What you should know

11 April 2022
South African Accounting Academy

The posts on LinkedIn consisting of daily tips on lay-bys:

Lay-by allows you to pay off an item every month with no interest added, but it remains the property of the store until the customer pays for the item in full.
Ask to see the store's lay-by terms and conditions before you enter the deal.
Ensure everything is documented and that you have a copy of what you put your signature to.
You can cancel a lay-by at any time within the contract agreement period.
You can request to be refunded all payments made; and
A cancellation penalty of 1% will be charged.

Click here to access the Lay-by tips:

Https://www.linkedin.com/company/consumer-goods-services-ombudsman/posts/?feedView=all

Relevance to Auditors, Independent Reviewers & Accountants:

The Consumer Protection Act is yet another piece of legislation that your clients (as suppliers of goods and services) must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
As a consumer, you also need be aware of your rights and responsibilities in terms of the Consumer Protection Act.

Relevance to Your clients:

A supplier of relevant goods and services has a duty to comply with the Consumer Protection Act, otherwise they could be held liable.
As an individual, a consumer has a duty to be aware of his/her rights and responsibilities in terms of the Consumer Protection Act.

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