Remember the problems we highlighted with Money4Gold about 18 months ago? Well, that was by far the most commented post ever (435 comments so far) on Money Watch, with many of you giving us stories of poor offers for your gold, delays in returning gold and general poor service.
The fast growth in the number of gold buyers and the service they were giving to customers prompted an Office of Fair Trading (OFT) investigation, which has announced its findings today.
The OFT has made a ruling against 5 gold-buying companies; CashMyGold, Cash4Gold, Postal Gold, CashYourGoldNow and Money4Gold. The first three of those companies have promised to change their business practices as a result of the findings. They have agreed to follow these new practices:
- provide customers with the option of receiving either a quotation for their gold which requires positive acceptance, or just a payment for their gold, and also displaying both options and the risks of each payment option clearly and prominently.
- providing consumers with clear information on the prices offered for gold, including information on the weight and carat of the items assessed.
- providing consumers with clear information on other important features of the service, such as whether gemstones are purchased or returned and if the consumer sends a gemstone the risks of damage or loss.
- making clear, when referring to the ‘high price’ or ‘top price’ paid for gold, that the prices offered to consumers are based on the scrap or smelt value of gold.
Less good news for the other 2 companies, CashYourGoldNow and crucially Money4Gold, which have ceased trading following the investigation.
Whilst it’s good news that less people are likely to be poorly served by these companies now, there’s currently no word on what will happen to the gold that was still in Money4Gold’s possession when they went into liquidation. Their UK website is now blank and the US site has no mention of the recent events.
If you know any more about this, please let us know in the comments below. We’ll also be on the lookout for more information.
photo credit: BullionVault
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