Your Layby Rights in Zambia

1. What is a layby?

A layby is a way to pay for goods in instalments before you take them home. You pay a deposit first, then make regular payments until the full price is paid. Once you've paid everything, the shop gives you the goods.

In Zambia, laybys are legally called hire-purchase agreements and are governed by the Hire-Purchase Act (Cap 399). This law gives you important protections — whether or not the shop tells you about them.

2. Your rights before you sign

The shop must tell you the cash price. By law, every layby agreement must show the cash price of the goods — the price you'd pay if you bought them outright today. If the cash price is missing from your agreement, you only have to pay 75% of the layby price. ^s.5

You must get a written agreement. Verbal laybys are not enough. You are legally entitled to a written agreement before you make any payment. ^s.5

You must get a copy. The shop must give you a signed copy of the agreement. If they don't, ask for one — it's your right. ^s.6

3. Your rights while paying

You can pay off early and save money. At any time, you can pay off the remaining balance before the end of the agreement. When you do, you get a discount of 5% per year on the remaining interest. ^s.16

You can ask for a full statement at any time. The shop must give you a written statement showing what you've paid, what you still owe, and the payment schedule — within 30 days of your request, and at no charge. ^s.9

Keep your receipts. Every payment you make should be recorded. Zedlayby tracks this automatically, but if you're paying outside the platform, always ask for a receipt.

4. What if you can't finish paying?

You can terminate (cancel) at any time. You can end a layby at any point before the last payment, by giving written notice. The most you'll ever owe is half the total price of the goods, minus what you've already paid. If you've paid more than half, you may owe nothing extra. ^s.18

Example: If the total price is K6,000 and you've paid K2,500, terminating means your maximum extra cost is K500 (K3,000 − K2,500). The shop cannot charge you more.

You have the Section 20 protection once you've paid over 50%. Once you've paid more than half the total price, the shop cannot simply repossess your goods. They must follow a court process, and you get any surplus from the sale. ^s.20

5. What if the shop takes back your goods?

If the shop repossesses your goods, you have 21 days to pay the overdue amount (the arrears) and get your goods back. This is called reinstatement. The shop must allow it — they cannot refuse. ^s.15

If you've paid over 50%, repossession can only happen through a court-appointed process. Contact Zedlayby support immediately if this happens.

6. Rights that can never be taken away

All of the rights above cannot be waived. If a shop includes a clause in your agreement saying you give up these rights, that clause is void — it has no legal effect. You still have the rights, regardless of what the agreement says. ^s.22

7. What the shop must do

• Give you a written agreement before taking any payment
• Show the cash price and the layby price in the agreement
• Give you a signed copy of the agreement
• Provide a statement of your account within 30 days of your request
• Allow you 21 days to catch up if they repossess your goods
• Follow a court process if you've paid over 50% and they want to repossess

8. Common questions