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Walmart may have just released their list of the hottest toys for 2021–but some low-income families may not be able to get their hands on them, thanks to the big box chain’s decision to eliminate their interest-free layaway program this year! The announcement from the Arkansas-based chain for holiday came on September 25th and has since been met with outrage on social media.
The box store revealed via press statement that it has removed its layaway payment options, and instead is offering payments “over time” through Affirm. “We’ve learned a lot in the past year as our customers’ needs and shopping habits have changed,” a representative for the company said at the time. “Last holiday season, we removed seasonal layaway from most of our stores with the exception of select jewelry items at select stores, and based on what we learned, we are confident that our payment options provide the right solutions for our customers.” Hm… We’re not sure how replacing a program that didn’t carry any fees with one that charges interest could be the “right solution” for *any* customer.
First, how does the sleek new program work? While shoppers *will* be able to get their hands on the eligible products, from gaming devices to toys, immediately (versus the store holding onto them like in the traditional layaway model), the new model will charge interest unlike layaway, between 10% and 30% depending on the customer’s credit score. Hence, the outrage!
The good news is that with the Affirm option, Walmart shoppers don’t have to pay the whole amount by the end of the month or else risk paying interest. It’s only when you miss a payment that you could get charge a fee, or not be allowed to use the system again. And depending on the price of the product, customers will have between 3 and 24 months to pay the bill. Walmart devoted a landing page called “Installment Financing” to the fine print of the offer.
If you recall, the company brought the popular program back in 2014, and customers are taking to Facebook to express their disappointment, and in some cases anger, over the corporation’s decision to take it away again. “If you’re planning to use affirm [sic] they do not allow you to put toys on there,” wrote one user. “Walmart doesn’t give a crap anymore about the low-income families,” they continued. “Walmart seems to be the new store for the elite,” wrote another. “Replacing layaway with personal credit lines up to 30%APR.” Yikes!
A small list of companies such as Sears and KMart will continue to offer layaway for this shopping season, so we’d suggest tha angry customers take their holiday dollars there!
