Short Answer: WhyNotLeaseIt does not have a repossession policy. Once an account becomes delinquent, the company sends it to collections but does not repossess the merchandise. Keep in mind, late and returned payments will incur fees starting around $15. For more details, see below.
WhyNotLeaseIt Repossession Policy
WhyNotLeaseIt is a leasing program that makes a variety of merchandise available for lease, including appliances, electronics, fitness equipment, furniture, jewelry, and tires. You can apply for a lease through WhyNotLeaseIt’s website or in person at a retail store that partners with WhyNotLeaseIt — most notably Kmart and Sears.
We called WhyNotLeaseIt’s corporate customer service department at (888) 949-6680 and spoke with multiple representatives to understand WhyNotLeaseIt’s repossession policy. We were told that WhyNotLeaseIt does not have a repossession policy. If your account becomes delinquent, the company will not send someone to repossess the merchandise you have under contract. Instead, your account will be sent to collections.
When Will My Account Be Sent to Collections?
During our research, we found that accounts are handled on a case-by-case basis. We asked WhyNotLeaseIt customer service representatives at what point accounts are sent to collections and were told that it depends on the individual account. One of the representatives we spoke with said he could not disclose further information unless it was about a specific account. To discuss your account with a representative, call WhyNotLeaseIt at (888) 949-6680.
Late Fees & Returned Payment Fees
Keep in mind that once your payment is more than 10 days past due, you will be charged a late fee of $15. In addition, a returned or declined payment will incur a $20 fee.
If you’re struggling to make regular payments, you should contact WhyNotLeaseIt and speak with a customer service representative about your options in order to avoid a buildup of fees.
WhyNotLeaseIt’s Payment Program
WhyNotLeaseIt’s payment program is confusing. As a result, WhyNotLeaseIt’s parent company, Tempoe LLC, has been cited with a pattern of complaints by the Better Business Bureau (BBB). Here’s a summary of the process:
- You have 90 days to pay off the merchandise purchased through WhyNotLeaseIt, customer service representative said.
- If the amount is not paid in full in 90 days, you must continue to pay until five monthly lease payments have been made.
- After five monthly lease payments, you have three options:
- Buy out the lease
- Return the items
- Continue to make payments
If you continue to make payments, you should know that you are no longer paying toward the purchase price, WhyNotLeaseIt representatives said. Once five monthly lease payments have been made, if you do not buy out the lease, you will transition to renting the merchandise. This means that while you continue to make monthly payments, the money will no longer count toward the purchase price; you’ll be renting the merchandise until you make a final buyout payment — which does not decrease with your monthly rent payments.
The result is that many consumers have paid well over sticker price for some items — having paid a few months toward the purchase price and several months in rental fees before finally buying out the lease.
It’s important to fully understand the payment program before leasing with WhyNotLeaseIt. If your account goes to collections, it could damage your credit score and make it difficult for you to lease-to-own or get approved for credit in the future.