Cash4Gold - Beware

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by: Mallory Megan Total views: 6 Word Count: 339 Date: Fri, 2 Apr 2010 Time: 3:31 AM 0 comments

We have all seen them - the showy "Cash4Gold" commercials, some of these show people on the street dancing, or at other times, M.C. Hammer alleging that you will get quick cash in exchange for your old, unused jewelry. Although human nature makes us want to unconditionally trust the dancing person or even with his track record, M.C. Hammer, it turns out that Cash4Gold may not in fact be too legit to quit.

Recently Representative Anthony D. Weiner called out Cash4Gold on their bad business practices. Standing in front of legitimate jewelry appraisers, Weiner warned consumers to take their business to a place that they knew was valid as opposed to the shady mail in gold exchange.

The way that Cash4Gold works is that consumers utilize special envelopes to send jewelry and gold to the company's offices in Florida. The advertisements claim the business will provide customers with a quick appraisal of the value of the items they have sent, and then they will mail them a check for that amount.

On paper, consumers are given a twelve day time span in which they have the ability to return their check and get the jewelry back. But according to research by Rep. Weiner and Consumer Reports, Cash4Gold paid out only 11 to 29 percent of the actual value of valuables sent to them, and often, they refused to mail jewelry back when it was requested to do so within the 12 day period.

Weiner suggested that the Federal Trade Commission should look into the whole Cash4Gold problem, adding that he wanted to introduce legislation that would regulate companies that use mail to exchange cash and jewelry.

This law would impose fines on businesses that melt down gold without the owner's consent or before a return period has passed. It could make companies allow enough time for consumers to request a refund and ensure that companies actually insure the jewelry they are returning to consumers.



About the Author

Mallory Megan is employed by a debt collection company. She also composes articles on business, finance, the credit industry and collection agencies. Grab a totally unique version of this article from the Uber Article Directory


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