Finance Terms and Conditions


Payless Mattress, Inc. Financing Terms


Interest Rates and Interest Charges

Annual Percentage Rate (APR) for purchases


How to Avoid Paying Interest

There is no grace period allowing you to repay your balance for purchases before being charged a FINANCE CHARGE. We will begin charging interest on purchases on the transaction date.

Minimum Interest Charge

If you are charged interest, the charge will be no less than $.50


Initial Fee


Annual Fee


Penalty Fees


Late Payment

Returned Payment



$25, based on the applicable state law.

See the Agreement for the applicable fee.


HOW WE CALCULATE YOUR BALANCE: We use a method called "average daily balance" (including new purchases). See the below Agreement for more details.

*INTRODUCTORY APR: If your Account is eligible for an Introductory APR, we will notify you of the applicable Introductory APR and the duration of the Introductory Rate when you open the Account.

LOSS OF INTRODUCTORY APR: We may end your Introductory APR and apply the standard APR of 21% if any payment is received by us more than 10 days after the scheduled due date.

BILLING RIGHTS: Information about your right to dispute transactions and how to exercise those rights is provided in the below Agreement. Refer to the remainder of this Agreement, including the reverse side, for terms and conditions of your Account that affect your rights and obligations.

This Revolving Charge Account Agreement and Disclosure Statement ("Agreement") governs the use of your Payless Mattress, Inc. Revolving Charge Account. In this Agreement the terms "we", "us", or "our" mean Payless Mattress, Inc. The terms "you" and "your" mean the person or persons, if more than one, who have accepted this Agreement either by signing the Agreement or using the revolving charge account.


TYPE OF ACCOUNT AND AGREEMENT: You have applied for and we have approved for you, a revolving charge account (your "Account") under which we will permit you to make purchases from us, up to the amount of your unused credit limit (your "Available Credit"). This Agreement is deemed accepted by you if (1) you sign the Agreement; (2) you sign the application containing the terms of the Agreement; or (3) after receiving this Agreement, your Account is used by you or a person authorized to use the account. Accepting the Agreement in any of the three ways described means that you agree to the terms and conditions contained in this Agreement and the terms and conditions contained in the application, which is part of this Agreement.

GOVERNING LAW: This Agreement will be governed by and interpreted in accordance with the laws of New Jersey.

CREDIT LIMIT: Your "Credit Limit" is the maximum amount we have approved for you to owe us at any single time. We have notified you of your initial Credit Limit. Your Credit Limit and Available Credit will be shown each month on your Billing Statement. From time to time, we may increase or decrease your Credit Limit. If we do so, we will notify you of the increase or decrease in writing or the new Credit Limit will be reflected in your Billing Statement. As you use your Account, all purchases and any other obligations, including FINANCE CHARGES, will be deducted from this Credit Limit. You agree not to allow the amount you owe us at any one time to exceed this Credit Limit. If you attempt to exceed the Credit Limit, we may cancel this Agreement and may require you to immediately pay us the entire balance outstanding under your Account, including all unpaid purchases, FINANCE CHARGES, and any other charges that may be assessed to your Account.

PROMISE TO PAY: You promise to pay us, according to the terms of this Agreement, for all purchases, including in-store, internet and telephone purchases, FINANCE CHARGES, Insurance charges, and any other charges that may be assessed to your Account. Your promise to pay includes purchases made by anyone else you permit to use your Account even if such person has not signed this Agreement. Each month, you must pay us by the "Due Date" shown on your monthly billing statement no less than the "Minimum Amount Due" shown on the monthly billing statement. The Minimum Amount Due is the sum of (1) the "Minimum Monthly Payment," figured in the manner described under the caption "Minimum Monthly Payment" in this Agreement, and (2) any "Amount Past Due."

MINIMUM MONTHLY PAYMENT: To figure your Minimum Monthly Payment, we first take the greater of (1) $25 or (2) 1/30th of the Account Balance (including previously billed FINANCE CHARGES) immediately following the latest purchase on your Account. We then round this amount to the next higher dollar. Your Minimum Monthly Payment is this figure or the New Balance shown on your monthly billing statement, whichever is less. Your Minimum Monthly Payment does not automatically decline as your balance declines. This payment calculation is also applied to weekly and biweekly payment agreements. 

MINIMUM MONTHLY PAYMENT DURING INTRODUCTORY APR PERIOD: If you are approved for a 0% Introductory APR, your minimum monthly payment during the term of the Introductory APR will be computed by dividing the dollar amount of your purchase by the term of the Introductory APR, in months. Thus, you will have equal payments for the term of the Introductory APR. Upon expiration of your Introductory APR term, your minimum monthly payment will be computed in the manner described above. You must mail the payment to the address shown on the monthly Billing Statement, or if you choose, you may make payments in person at Payless Mattress, Inc. retail store. Your payment will be credited as of the date of receipt by us (whether mailed or made in person). You can pay the outstanding balance on your Account in full or in part at any time without penalty. This payment calculation is also applied to weekly and biweekly payment agreements. 

APPLICATION OF PAYMENTS: We will apply payments we receive from you in the following order: first, to unpaid FINANCE CHARGES, Insurance charges, and any other unpaid charges; and second, to purchases and other debits charged to the Account, in the order posted to the Account.

FINANCE CHARGE: "FINANCE CHARGE" is the dollar amount the credit extended will cost you. The FINANCE CHARGE is computed by multiplying the Daily Periodic Rate shown in the table below by the number of days in the billing period (usually around 30) and multiplying that result by the balance subject to FINANCE

CHARGES. There is a minimum FINANCE CHARGE of $.50 imposed in any billing period where a FINANCE CHARGE is due.

The balance subject to FINANCE CHARGES is the Average Daily Balance. To get the Average Daily Balance, we divide the sum of the closing daily balances for all of the days in the billing period by the actual number of days in the billing period. The closing balance is computed daily by adding to the previous day's balance all purchases posted to your Account on such day, if any, and subtracting all payments and credits applied to the principal balance on such day. Purchases are posted to the Account no earlier than the date the goods or services are purchased or the date the goods are delivered or services are completed, whichever is later. Unpaid FINANCE CHARGES, if any, are never included in the balance subject to FINANCE CHARGES.


Applicable State Law

Daily Periodic Rate(s)

Balance(s) Subject to FINANCE CHARGE

Annual Percentage Rate

See "Governing Law" provision above

0.5753 %

Full Balance



FREE PERIOD/GRACE PERIOD: FINANCE CHARGES begin to accrue on the date the purchase is posted to the Account, as described in the above paragraph. There is no "free period," or grace period, during which credit extended may be paid without incurring a FINANCE CHARGE.

LATE CHARGE: Late payments are charged $25. During an applicable Introductory APR period, or Promotional Rate period, if any payment is received by us more than 10 days after the scheduled Due Date, you will lose the Introductory or Promotional APR and the standard 21% APR will apply to the unpaid balance as of the date of purchase.

RETURNED PAYMENT FEE: You agree to pay us a fee if your bank dishonors any payment instrument you give us. The fee will be $25. Refer to the "Governing Law" provision above for applicable state law.

CHANGE OF TERMS: We may offer a Promotional APR for subsequent purchases made under your Account. You will be notified at the time of the transaction if a Promotional APR applies to your purchase. We may, at any time and to the extent not prohibited by applicable law, change the rates and other terms and conditions of your Account (with respect to existing balances and future purchases), including your Credit Limit or the periodic rate of FINANCE CHARGE. To the extent required by law, we will notify you by mailing written notice at your last known billing address prior to the effective date of the change and give you the opportunity to close your Account and pay off any balance you owe under the terms of this Agreement prior to the change.

ACCOUNT TERMINATION OR TEMPORARY SUSPENSION: We can terminate your Account, accelerate the balance of your Account requiring you to pay us the entire outstanding balance in one payment, and charge you certain fees; or we can temporarily suspend credit privileges for your Account, refuse to permit additional purchases or reduce your credit limit if you do not make your Minimum Payments under this Agreement or if you engage in fraud or material misrepresentation in connection with your Account. We may also terminate your Account privileges due to inactivity or if you move from our service area. You, and anyone you have authorized to use your Account, may not make purchases on your Account while it is suspended. If we temporarily suspend your Account privileges, the suspension will become effective on the date we mail you notice. During the suspension period you must still pay at least your Minimum Monthly Payment by the Due Date specified on your billing statement. When the reason for which your Account was suspended ceases to exist, if you request us to do so, we may reinstate your Account privileges. FINANCE CHARGES will continue to accrue at the rate specified during suspension.

SECURITY INTEREST: You grant us a security interest under the applicable state law's Commercial Code in the goods or property being purchased, including in-store, internet and telephone purchases. Our security interest includes all attachments, accessories, and equipment placed in or on the goods, except you do not grant us a security interest in your home even if the goods are installed in your home. Refer to the "Governing Law" provision above for applicable state law. You agree that the purchase of the above goods is for personal, family, or household use only. NOTICE: if you fail to make payments as agreed, or are otherwise in default, you agree that Seller, or any lawful assignee of Seller's rights under this Agreement, can repossess any goods which have not been paid for in full. No goods purchased under this Agreement is intended to serve as collateral or security for any other purchase while unpaid.

OWNERSHIP AND DUTIES TOWARDS PROPERTY: By giving a security interest in the Property, you agree: (1) to keep the Property in good condition; (2) to notify us of any loss or damage to the property; (4) to provide us reasonable access to the Property for purposes of inspection; (5) to keep the property free from liens and other security interests; (5) to promptly pay all taxes and assessments thereon; and (6) to not destroy or dispose of the merchandise or encumber it until the Property has been paid in full.

DEFAULT: You will be in default if any of the following occurs: (1) you fail to pay the Minimum Amount Due on the Due Date; (2) you fail to perform any other obligation that you have undertaken in this Agreement (which includes doing something you have agreed not to do); or (3) you become a debtor in any bankruptcy proceeding, or others take legal action to collect money or repossess property from you. If you default, you agree to pay our costs for collecting amounts owed, including, without limitation, court costs, attorneys' fees, and fees for repossession, repair, storage and sale of the Property securing this Agreement. You also agree to pay our actual and reasonable costs of collection occasioned by removal of the goods from the state without our written permission, your failure to notify us of any change of residence, or your failure to communicate with us for a period of 45 days after any default in making payments due under this Agreement. FINANCE CHARGES will continue to accrue at the rate specified above after any default and/or any judgment.

REMEDIES: If you are in default of this Agreement, we have all of the remedies provided by law and this Agreement. Remedies include, but are not limited to: (1) We may require you to immediately pay us the remaining unpaid balance, including the Amount Financed, FINANCE CHARGES, Insurance charges, and all other agreed charges. (2) We may immediately take possession of the Property by legal process or self-help, but in doing so we may not breach the peace or unlawfully enter onto your premises. If we repossess the goods purchased under this Agreement, we have the right to sell them at a public or private sale and to apply the proceeds of the sale to the balance due. If we receive more money from the sale than you owe, we will pay the difference to you. (3) We may pursue a judgment against you for the Amount Due under this Agreement. Except to the extent limited by law, by choosing any one or more of these remedies, we do not waive our right to later use another remedy. By deciding not to use any remedy, we do not give up our right to consider the event a default if it happens again. In the event we repossess the goods, we must give you notice of your right to redeem, and notice of either a public sale of the goods or of our intention to keep the goods, as the case may be. Notice will be in a manner prescribed by Applicable State law.

ASSIGNMENT OF AGREEMENT: You agree that we may, at our option, assign your payment obligations under this Agreement to anyone we choose. It is expected that we will assign this Agreement and purchases made under it to Payless Mattress, Inc. without further notice to you. You agree that the assignee will have all of our rights and remedies under this Agreement, and you agree to pay all that is still owed under this Agreement to the assignee. We may assign the Agreement and retain our right to receive the FINANCE CHARGE. You may continue to make purchases under this Agreement after it has been assigned and the terms of this Agreement will apply to those purchases.

CHANGE OF NAME, ADDRESS, OR EMPLOYMENT: You agree to notify us in writing if you change your name, address, or place of employment.

SEVERABILITY: If any provision of this Agreement is held to be unenforceable, that determination will not affect the validity of the remaining provisions of the Agreement.

JOINT ACCOUNTS: If this is a joint account, each of you will be jointly and individually responsible for all amounts due on this Account. On request by any party to the Account or on receipt of inconsistent instructions, we may, at our option and without notice to any other party, refuse to permit any purchase, or refuse any other request with respect to the Account.

MISCELLANEOUS: Loss or damage of goods will not release you from the obligation to pay, after you have accepted delivery of the goods. We are authorized to take all necessary action to perfect and continue perfection of our security interest in all goods purchased pursuant to this Agreement. We may disregard any statement on or accompanying a check written in payment of amount owed under your Account if the statement is to the effect that the payment constitutes "payment in full" of the amount owed, and we may deposit such check without giving notice to you. Your Account will not be considered "paid in full" until the unpaid balance and any applicable FINANCE CHARGES or other charges have been paid. If you dispute any charge on your Account, you must follow the procedures described in the "Your Billing Rights" section below to resolve the disputed charge. We can waive or decline to enforce any of our rights under this Agreement at any time without losing them.



Your Rights And Our Responsibilities Under The Fair Credit Billing Act.

What To Do If You Find A Mistake On Your Statement:

Payless Mattress, Inc. takes all precautions to ensure accurate billing. However, if you think there is an error on your statement, write to us on a separate sheet of paper (not on the monthly statement or payment receipt) at Payless Mattress, Inc. 944B South Orange Avenue Newark, New Jersey 07106.

In your letter, give us the following information:

  1. Account Information: Your name and Account number.
  2. Dollar Amount: The dollar amount of the suspected error.
  3. Description of problem: If you think there is an error on your bill, describe what you believe is wrong and why you believe it is a mistake.

You must contact us:

  1. Within 60 days after the error appeared on your statement.
  2. At least 3 business days before an automated payment is scheduled, if any, if you want to stop payment on the amount you think is wrong.

You must notify us of any potential errors in writing. You may call us, but if you do we are not required to investigate any potential errors and you may have to pay the amount in question.

What Will Happen After We Receive Your Letter:

When we receive your letter, we must do two things.

  1. Within 30 days of receiving your letter, we must tell you that we received your letter. We will also tell you if we have already corrected the error.
  2. Within 90 days of receiving your letter, we must either correct the error or explain to you why we believe the bill is correct.

While we investigate whether or not there has been an error:

  1. We cannot try to collect the amount in question, or report you as delinquent on that amount.
  2. The charge in question may remain on your statement, and we may continue to charge you interest on that amount.
  3. While you do not have to pay the amount in question, you are responsible for the remainder of your balance.
  4. We can apply any unpaid amount against your credit limit.

After we finish our investigation, one of two things will happen:

         1.   If we have made a mistake, you will not have to pay the amount in question or any interest or other                    

                 fees related to that amount.

         2.   If we do not believe there was a mistake, you will have to pay the amount in question, along with

                 applicable interest and fees. We will send you a statement of the amount you owe and the date

                payment is due. We may then report you as delinquent if you do not pay the amount we think you


If you receive our explanation but still believe your bill is wrong, you must write to us within 10 days telling us that you still refuse to pay. If you do so, we cannot report you as delinquent without also reporting that you are questioning your bill. We must tell you the name of anyone to whom we reported you as delinquent, and we must let those organizations know when the matter has been settled between us.


If we do not follow all of the rules above, you do not have to pay the first $50 of the amount you question even if your bill is correct.



Keeping customer information secure is a top priority for all of us at Payless Mattress, Inc. In order to help you understand what information we collect and how we use it, we have implemented this Privacy Policy. Unless we indicate otherwise, the term "information" in this Privacy Policy means information that specifically identifies you. This Privacy Policy applies to all current and former customers of Payless Mattress, Inc.

What Information Is Collected
In the process of serving you, we become aware of certain "nonpublic personal information" - information about you that is not available publicly. This information comes to us from a variety of sources including:

  1. Information you provide directly to us on applications or otherwise (such as Social Security number, assets and income);
  2. Information related to your transactions with us, or others (such as your account balance, payment history, parties to transactions and account usage);
  3. Information we receive about your transactions with nonaffiliated third parties; and
  4. Information that we receive from a consumer reporting agency.

We protect personal information we collect about you by maintaining physical, electronic, and procedural safeguards that comply with applicable law and assist us in preventing unauthorized access to that information. We train people who work for us how to handle personal information and we restrict access to it.

We Do Not Sell Any Information

We do not permit list brokers, mail-order businesses, telemarketers, or other marketing companies to contact you to promote their products or services, and we do not sell, lend, or give out your information for this purpose. If you are a former customer, we maintain the confidentiality of your personal information as if you were still a customer.

We Strive To Maintain the Accuracy Of Your Information

We work to ensure that the information concerning you is accurate in all aspects. If we become aware of inaccuracies in our records, we will take prompt steps to make appropriate corrections.


What Information We Disclose

Federal law allows us to share information in certain circumstances:

  1. We may disclose information we collect, as described above, to companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements.
  2. We may share your information with companies that we hire to perform necessary account-servicing functions at our direction, to manage, service and maintain your account.

We also are permitted under law to disclose nonpublic personal information about you to "nonaffiliated third parties" in certain other circumstances. For example, we may disclose nonpublic personal information about you to third parties to assist us in processing your application with us, to government entities in response to subpoenas, and to credit reporting agencies.