No Payment Loans

I've heard them advertised for years and they have always bothered me. Furniture stores are especially guilty, along with may others. You know what I'm talking about. "No money down, and no payments until 2011!" It's the no money down and no payment loan. This loan is now declared illegal and is coming to an end.

It seems to me that furniture stores are taking a big risk by offering this. How do you repossess at sofa that is a year old and the dog has peed on it, not to mention the baby. Eeewww! And what if the purchaser decides he doesn't like that couch after all, so he refuses to pay. How much money does the collection agency make on this one? They can probably find the furniture in the house that is being foreclosed on. Bankruptcy cures all..... Except for the furniture store. I suppose they can always revoke the sales commission.

Anyway, the new legal avenue is to pay up front, or pay as you go. But you must pay. There is going to be a whole lot less furniture sold. Or shall I say..... given away?