Gold companies reprimanded by OFT
February 15, 2011
A number of gold buying companies have been issued with a warning from the Office of Fair Trading after it was found that they were treating their customers unfairly. Many people have started selling gold jewellery and items over the past couple of years due to difficulties in getting loans and finance when they need money, and because of the difficult financial climate.
However, an investigation was carried out by the OFT showing that many customers were being forced into taking what had been offered for the jewellery even if they did not believe it was a fair offer. Companies were found to be limiting the amount of time that consumers had to refuse an offer, and by the time they did refuse their jewellery had already been melted down on the assumption that they were accepting.
Five firms are at the receiving end of OFT warnings and have been told to change their practices, and this includes CashMyGold, Cash4Gold and Postal Gold. The companies are said to be working with the OFT in order to improve their practices so that customers are dealt with more fairly. Following the investigation the OFT raised a number of concerns about the companies, and whilst two of the five have closed down the other three are said to be cooperating with the watchdog.
A Cash4Gold spokesperson said: “We have, and will continue to be, clear with our customers as to what they should expect, and appreciate the OFT’s efforts to ensure our competitors adopt some of the same practices that have been part of our service offering from day one. Unlike some other gold buyers who shut up shop, we were pleased to work closely with the OFT to fully resolve all concerns.”
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