There may be instances where a customer does not get approved for the full cost of leased items they were planning to purchase. Although Koalafi will try to ensure that customers can purchase what they need, Koalafi also prohibits certain workarounds to lease items outside of the usual process, as they may violate lease-to-own statutes.
Down payments and customer contributions
Koalafi does not allow down payments or similar to be contributed towards a lease purchase. The total cost of items must be covered in the approval amount of the lease.
Split transactions
Koalafi strictly prohibits "Split Transactions", which is defined as using two or more lease approvals, whether with the same customer or different customers, to lease a single item.
For example: Customer named "Wally" is approved for $500 but wants a couch that costs $1,000. Wally cannot use another customer's approval to fulfill the remaining cost of the couch, even if it is a relative or spouse.
Split leasing
Similarly, Koalafi strictly prohibits "Split Leasing", which is defined as using other financing companies along with Koalafi to purchase 1 item or invoice/ticket.
For example: Wally also gets approved with another financing company for $500. Wally cannot use Koalafi AND the other financing company to purchase the $1,000 couch.
Rationale
Koalafi enforces these rules and standards to comply with Lease-To-Own regulation, statutes, and legal recommendations. Split Transactions, Split Leasing, and Down Payments are prohibited to make clear the ownership of the items once leased with Koalafi. If a transaction uses any of these methods, it could cause confusion and obscurity with who owns the merchandise, which can arise when returning the product.
Questions?
If you have any questions about lease approvals with Koalafi, feel free to contact Merchant Support at 844-238-6500