Monday, February 14, 2011

Cash for gold scam exposed

Gold-buying firms have been told to improve by Office of Fair Trading.

Gold Companies that buy gold for cash have grown in number in recent years.

Three companies that buy gold from consumers by post have been ordered to improve their treatment of customers.

CashMyGold, Cash4Gold and Postal Gold
agreed to make changes after an Office of Fair Trading (OFT) investigation.

The high price of gold has meant that companies that exchange people's gold for cash have grown in popularity.

But the OFT found that a handful were locking customers into accepting the offer made for their gold items.

Sometimes customers' jewellery was melted down on the assumption that they had accepted a quote.

The watchdog found that some businesses were sending customers a payment for their gold, which if not rejected and returned within a very short period of time by customers, was taken as consent for the payment.

That meant the gold was then melted down.

Gold jewellery Gold-buying companies must now offer clearer information and more options to customers:

* Providing people with the option of a quotation for their gold - which the customer would agree to, or withdraw from the deal - or just a payment

* Clear information on the prices offered, including the weight and carat of the gold

* Details on whether gemstones can be accepted, and explaining the risks to the customer of sending them

* Making sure when referring to a "high price" on offer, that they are referring to the scrap price of the gold

Next Page: Tips on safer way to sell your Gold and Silver items.