How much for that sofa? Read the fine print.

If you need furniture or appliances but don’t have the cash to buy them outright, you might be thinking about other payment options. If you do, pay attention to terms written in fine print that might have you paying much more than you thought.

In a proposed $175 million settlement, the FTC says Progressive Leasing, a company offering virtual rent-to-own payment plans out of retail stores, led people to believe they’d pay the cash or retail price for furniture and other items. Ads and salespeople promoting 90-day “same as cash” prices enticed people to buy from stores using Progressive Leasing as the form of payment. But, according to the FTC, people usually wound up paying much more than the ads and salespeople told them they would.

When shoppers asked questions — about other charges like the interest rate — the FTC says Progressive Leasing had trained sales associates to say there was no interest rate because the payment plan technically wasn’t a loan, leaving out the fact that there were, indeed, other types of additional charges. Once people signed up, Progressive automatically enrolled them in monthly payment plans that withdrew money from their bank accounts over 12 months. As a result, people typically paid about twice the retail price when they paid according to these plans.

Keep in mind that you may have more options than you think when buying big-ticket items. But if you come across ads and salespeople promoting low payments, zero interest, or other attractive terms, have them explain exactly what you’re signing up for. Always ask:

• How much the payments will be?
• How long and how much it will take to pay in full?
• Are there other fees or costs – including if you pay off early?

If you don’t get straight answers, walk away and tell the FTC.

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