Pat Fitzpatrick thought she was making a smart financial move—leasing a pair of beds and some kitchen chairs from a local furniture store with a promise: pay it off in three months, and there’d be no extra fees.
She followed the plan to the letter. But when the payments ended, the bills didn’t. Instead of a clean slate, Pat was blindsided with a shocking balance: nearly $3,000 still owed.
When the “Payoff” Isn’t the Payoff
What happened to Pat isn’t a fluke. It’s a troubling pattern buried deep in the fine print of many lease-to-own and credit agreements. In her case, the finance company claimed she had not fully paid off the lease within the contract terms, triggering the full lease amount instead of the reduced promotional rate.
Here’s where it gets slippery:
- The payment amount listed on her billing statements appeared to be the final payoff.
- But the contract was written in such a way that unless the entire promotional payoff amount was made by a specific time (and possibly in a single lump sum) the consumer could be stuck paying the full term lease, sometimes costing double or triple the retail price.
It’s the kind of clause that many consumers miss… and many companies don’t make easy to understand.
Why It Keeps Happening
These types of financing agreements, often offered in-store by third-party finance companies, are designed to sound simple: “No interest if paid in three months!” But unless you're paying attention to every clause, you could be agreeing to:
- Hidden fees
- Higher interest after promotional periods
- Balloon payments
- Confusing "early payoff" terms
The contract appears to be written to intentionally make you believe the billed amount is the payoff, when you actually owe more.
In Pat’s case, the outcome was rare: the furniture store ultimately stepped in, acknowledged the issue, and forgave the balance. She kept her furniture and her peace of mind. But not every consumer is so lucky.
Smart Strategies to Avoid These Traps
Before signing any financing deal—especially one that sounds too good to be true—consider these practical protections:
- Read the entire contract, not just the promotional flyer. Look for terms about "early payoff," "interest accrual," and "lease total."
- Ask the company to clearly state in writing what the final amount due will be if you pay early. Don’t rely on verbal promises.
- If financing, consider a credit card with fixed interest rates. You may pay more in interest, but you’ll know exactly what your payoff schedule looks like.
- Better yet, save up and pay in full when you can. No interest, no traps, and no surprises.
Lease-to-own deals can sound appealing—especially when you need furniture fast. But hidden clauses and confusing terms can turn a good deal into a financial nightmare. Fortunately, Pat's story has a happy ending, but it’s a cautionary tale for anyone signing a contract.
To learn how to protect yourself and find companies that play by the rules, visit TrustDALE.com, where every certified business is backed by Dale's Make-It-Right Guarantee.
