UPDATE 2: Cash4Gold (Green Bullion Financial Services, LLC) sent us a copy of a judgement they obtained on default, granting a "temporary injunction" against the ex-employee to prevent them from "publishing any more confidential, proprietary information, and any defamatory information on the internet."
We continue to look into the ex-employee's statements and will keep you apprised. (7/02/09)
UPDATE 1: Cash4Gold has filed a defamation suit (right-click here and save to your harddrive to view the PDF) against the ex-employee who posted the below allegations against the company on ComplaintsBoard. The company asserts that the employee's statements were entirely false, and claims that she said she was going to "make Cash4Gold be sorry for firing her." They have also asked us to remove this story. We'll be looking into this and will keep you posted on further developments. (4/3/09)
If you decide to investigate the creaky clock tower, turn to page 4.
If you decide to read the confessions, to the post inside.
Below I have attached the full details on the scam involving this company. We know this first hand, because this is how we were trained. Please take note of this information and do what you can to get the word out there, especially in a time when the economy has truly affected everyone for the worst. Thank you!
I am a former employee of Cash 4 Gold. I did not know much about the company before being hired. On my first day of being hired, I was taught the "Cash 4 Gold Scam" from beginning to end.
1. The "refiner's pack" that is used for you to put your jewelry is "insured for UP TO 100 dollars, " according to how much they determine from a description from you, the worth of your items to be, NOT an actual fully researched appraisal.
2. We receive your "Refiner's Pack" within 3-4 days, BUT we are instructed to tell you that it takes "7-10 business days, for us to receive your pack, ALTHOUGH many times, your package has already arrived.
(All cash4gold customers who have called customer service to track a package can vouch for this)
3. Your jewelry gets appraised by hand, a magnifying glass, a plastic container, a small weight pad, and a bottle of ORANGISH fluid, which your items are then determined a value for. Not million dollar equipment or specially trained jewelry experts. The company was temporarily closed recently due to health and code violations. I have witness testers being transported to Medical Centers, due to the testing department environment. There is literally a cloud of smoke in the air from acid and other testing material. If you were thinking it was some state-of-the-art testing facility, you thought WRONG.
4. Although the payment (check) for your item is dated within 24 hrs of testing your jewelry, we SOMETIMES DO NOT actually send out the check until up to 3-4 days later. (if you are a customer check the date the check was issued against the stamped date on the envelope.)
5. We do offer a 100% Satisfaction Guarantee or your jewelry returned, BUT THE CATCH IS, that the guarantee is to contact us within 10 DAYS from when your check is DATED. (This begins with the time it took for the accounts payables dept. to ISSUE the check and also including the TRANSIT TIME for you to receive your check in the mail. **** NOTATE THE COMMERCIALS THAT INSINUATE THAT YOU GET YOUR CASH IN 24 HRS.*** If you request (sign) for FAST CASH (direct deposit) you automatically WAIVE your rights to have your items returned, EVEN if you are not satisfied with amount of your deposit.
6. You generally receive your check around the "7th-10th" business day, AND majority of the time Customers are outraged when they lay eyes on the amount of their check. Some Customer's even receive a check for 0.01 cents.
7. There have been times when we have received your package and MISPLACED or LOST it at the facility. We CLAIM to not have received the items and even try to convince you that it was lost in the hands of USPS. At which point we begin an insurance claim process on your package. We ask you to send us an itemized list of the content of the package, trying to be as descriptive as you possible can (if you can remember everything in full detail) and a copy of your state issud ID. We then issue an INSURANCE CLAIM for UP TO 100 dollars. GOD FORBID your items are worth more then a 100 dollars. If you call customer service to check on the status of your shipment, and we actually have not received your package, we inform you of the insurance claim process. For those who know that their items are worth more than a hundred dollars, they become very upset and threaten to take action against the company, at that point we inform the customer that if they knew their items were worth more they should have added additional insurance at the Post Office. BUT unless you are paying to ship your items in a completely different package other then the refiner's kit, you are unable to add insurance to the package.
8. For those who do get in touch with us within the allotted time frame, we already know what you are calling about. Customers want their items returned, because there check amount is so insultingly LOW. The first thing a Rep will ask you is "HOW MUCH WERE YOU EXPECTING TO GET BACK?" This way we can know how much to "BONUS" you.
*Definition of a BONUS: We issue low checks just to have you call us back if you are smart enough to realize that you just got scammed. For the smart one's we are paid to offer u a bonus up to 3x the original amount of your check and you accept. For ex: Sally Smith receives a check for $27.86 for a Rolex watch(which we don't issue value for), a class ring, a ring with diamond chips, a pair of earrings with emeralds, as well as a few sterling silver pieces, and maybe a few items that were really of no value. Now Sally Smith calls the cust srvc dept, where she speaks to a rep who seems so concerned and will see if she can do better with the amount by speaking to a "SUPERVISOR". We then place the caller on Mute, and speak to our neighbors or doodle on a sheet, or twiddle with our hair for about 45 seconds, while we are supposedly speaking to our supervisor about Ms. Smith's complaint. We then come back with an offer to "BUMP UP YOUR MELT DATE or any other lies the cust srvc reps can think of, and offer you a total amount of $53.20 which is a little under double the amount of your original check; in which case if you accept, the cust srvc rep makes a 15.00 bonus off of your transaction. If the customer service rep offers you under triple the amount of your orig check, he/she makes 10.oo in bonuses.
9. If you accept the offer, the deal is done, and you are told that the call is recorded (which most of the time, the record button does not work, or the box if full.)It's just a way to make your feel binded by a verbal contract. IF you do not accept the deal, you have to return your check, and it takes sometimes up to a month to receive your items back after we receive the check.
10. If you only want the items that we do not find of any value back, you have to pay 10.00 shipping and handling fee to have your own items returned, which varies. Although it is listed under the terms and conditions, this charge varies from a 10.00-15.00 charge to NO charge, reason being, UNSURE.
Cash 4 Gold is definitely not a trustworthy or credible company to do business with. You are almost better off taking your items to a local pawn shop or shopping around for other companies. With the economy the way it is, Cash 4 Gold seems to be a way out of financial stress for some, but in actuality becomes a stress of its own. I would advise you to think twice before sending in valuables or items inherited and of sentimental value, its not worth it."
PREVIOUSLY:
Cash4Gold Offers Blogger $3,000 To Remove Negative Post
How To Avoid Getting Ripped Off By Cash4Gold
Someone at Consumerist do a story on this please.
]]>Cash4Gold is to gold as Gamestop is to video games....
]]>http://cash4gold.blogspot.com/2009/02/response-to-complaintsboard-article.html
]]>@polyeaster: But then who would answer spam, or try to collect 26$ million form some prince in some place they never heard of?
Wouldn't it make more sense for the government to get in on this? It would be like a tax on stupidity. They could use the money to pay off the debt from giving money to bankers who can't figure out how to invest in something stable.
]]>Plus, the idea of sending your gold in through the mail is just plain fishy and should be enough to make the average person nervous.
]]>only suckers would mail their jewelry back after watching this commercial.
Reminds me of that 1800 dental commercial
]]>As for the Cash4Gold commercial, they show you gold being melted and state "We are the refiner." I refine some gold myself and I, also, send gold to refineries. Gold is refined using chemical processes, I don't know of anyone refining anymore using a heat and melting process, it's just to cumbersome and the loss of gold can be signigicant compared to the chemical processes that have been developed over time.
Hope this helps.
]]>Actually Owen, I would go to a jewerly store and get a ball park valuation figure and... What am I talking about? No way I'll do business with them. Since the first time I saw the commercial something smelled funny to me, and is not my dog!
]]>Business reply mail that looks odd is discarded (this is agreed upon between those using the service and the postal service), or, if possible, tracked to the sender to give them hell. The discarding costs the Post Office money. They don't directly charge the business reply mail scheme that money, it raises costs on everything.
So, basically, doing that means you give the post office one more excuse to raise the cost of your stamps.
If you really feel the need to do this, you are better off filling (NOT stuffing, since those would look odd and be discarded) the business reply envelopes with the shredded remains, or confetti, from business reply postcards. Those will actually make it to the business in question. But it's still not nice, since now you've made a mess of the desk of someone who hates their job and gets about $7 an hour to do slave-labour style work.
]]>I'm thinking this is just a disgruntled employee. I see nothing that screams "Scam".
1. the refiner's pack insured up to $100. I'm sure it clearly says that. If you think your stuff is worth more, don't use the refiner's pack.
2. Get it in 3 days say it takes 7 to 10. Saying it takes 7 to 10 days covers everything. It could be that Fedex or UPS's ground shipping states 7 to 10 days.
3. Appraisals by hand. Do ads SAY that they use multi-million dollar equipment.
4. Not sending checks out right away. Show me any large business that can turn a check around in less a couple of days.
5. 100% satfaction. Ok, this one kind of stinks but, there are FAR worse terms on the internet. No refunds, restocking fees, etc.
6. Receive refund check in 7 to 10 days. See #5
7. Lost package. Ok, if a package is lost, of course they're going to blame it on USPS. I'm sure this goes on everywhere. It's not right but, I don't think it's part of a scam.
8. "BONUS". This goes on everywhere. Have you ever called to cancel your credit card? They'll offer you a lower rate. Ever call to cancel HBO? They'll give you a reduced rate.
9. Call recorded. come on, now we're streching to find stuff to complain about.
10. Pay shipping and handling for returned items. This would be a scam if they didn't tell you that when you send them the stuff.
]]>http://www.seflorida.bbb.org/ComplaintDetail.aspx?CompanyID=16000679
I'd just send them stuff from Goodwill.
]]>A+
]]>c) People trust things they see on TV and in ADs. People think that pawn shops are sleazy and will rip you off. Stuff on tv always seems more reputable to some people. The people that send in cash for gold are probably the same people that order the sham-WOW and the Ronco food dehydrator. Advertising works.
]]>Awesome "Choose Your Own Adventure" reference! Those books ruled!
]]>The only people stupid enough to use this service are thieves who know better than to try pawning hot items. They deserve what they get.
]]>When recessions/depressions happen people buy and sell gold:
The rich buy it as a hedge against the falling dollar/inflation and hope to reap profits as gold goes higher.
The poor sell it hoping to cash in on higher gold prices.
But people tend to think their jewelry is worth more than it actually is. Your 10 to 14k gold chains, class rings and, bracelets are not worth that much. When you have that is 16-18 to 22k gold those will be worth a lot more- especially if they are solid and not electro-plated.
Your best bet is to pawn your jewelry, sell it on craigslist or go to a local jewelry who offer money based on its worth.
]]>I wouldn't send it through the mail to a guy I saw on late-night television either, mind you.
]]>I don't feel bad for him because there have to be more legitimate ways that he, a fairly well-known personality, could raise money and live a comfortable lifestyle.
]]>that still doesnt move them from the "inferior example of human race" section in my book.
]]>#1 refiners pack insured for $100, yeah, so, USPS and UPS both have limitations on insurance and they could care less if the item is worth $2000,
#2 takes 3-4 days but tell them takes 7-10 business days, yeah, again, so what, who can predict the mail, the second you say we will receive them in 3-4 days the mail will take 5 and someone will freak.
#4 don't send out checks for 3-4 days... again big deal, all the banks in the world float funds for more than a full business week just to collect on the interest, this is not even close to that...
I could go on, but I think my point is made. Not saying they are the greatest company in the world, but these are hardly a "scam". No one is twisting your arm to send in your gold, AND, you are dealing with a pawn shop, what do you expect???
]]>Wow, that's amazing. I hear them adverstising all the time on SirusXM and TV. That's sad that the company has bad business ethics. I just feel bad for the people that they ripped off.
]]>On the Howard Stern Show, they advertise constantly. Anyone who listens to the show probably hears a million Cash4Gold advertisements, and after awhile, I think you feel almost obligated to sell "your unwanted jewelry". You feel almost guilty about it.
]]>Joking aside, I think maybe there's a reason HONEST people think Cash4Gold is a good idea. Craigslist/ebay is full of people pulling scams (Western Union checks and whatnot). I assume these people rationalize, "This company must be legitimate, since they have commercials and all. I won't run the risk of being scammed with them!"
This is obviously not the case, but that's probably what they're thinking.
]]>@johnva:
How would you prove that your gold belongs to you? When you inheirit a ring that has been passed down for three or four generations, do you really think it comes with ownership papers? All they ask you at a pawn shop is if the object belongs to you. That's really all they can do. They cover themselves by asking the question and theives cover themselves by answering 'YES'.
]]>@Mary Marsala with Fries: @HogwartsAlum:
How much trouble could it really be? Do you have any idea how many muggings there are every single day? How many home break ins there are? It wouldn't be hard to obtain if you were less than principled. And as far as verifying that you are the owner... How do you think they would do that? Do you have ownership papers to your gold earings or wedding band? I've been married for so long that even if I had kept the receipt for my wedding ring it wouldn't be legible. They aren't going to be able to prove ownership to anybody. They might have you declare that you own it, but a theif wouldn't have a problem lying if they had already stolen a bag of gold.
]]>Well, of course the engagement ring you pay $6,000 for at a jewelry store isn't going to be salable for $6,000 on the open market, but I wouldn't call that "depreciation," I would call it "the used goods market." I would think that you would get $6,000 for it minus the original markup from the store (labor to produce the ring, etc.)
You're right about the gemstone market. Gold is gold is gold, you know the karat weight based on whatever's stamped on the inside of the ring, and anyone can weigh it and do some simple math to find the market value, and that's what you're going to get paid for it, same as you'd get paid for a lump of gold in any form.
Diamonds, obviously, come in a far more diverse array of qualities, and since they've already been cut specifically for a piece (which you sold for the gold) it's not like you can melt them down and re-use them.
]]>if they send you a check, it's not really cash is it.
]]>@TVarmy:
Selling it to a pawn shop would leave an even bigger trail. Pawnbrokers tend to be heavily regulated and need to take down identification. They are also frequently required to hold merchandise for a certain amount of time before they can sell or otherwise dispose of it. If you send your stuff to Cash4Gold, they most likely don't keep extensive records of what they recieve and by the time any law enforcement agencies would stop by to investigate, they'd probably have melted the gold down already.
]]>@Ingram81:
Alternative medicine. Think "detoxification therapy" and homeopathy.
]]>@ekthesy:
That's partially true. Used jewelry is largely only worth scrap value on the secondary market. So the gold that your ring is made of hasn't really depreciated, but it really isn't worth much AS A RING.
Now the place to really get screwed is on selling gemstones. If you can even find a buyer, the price you'll be offered will be based on a fraction of the WHOLESALE price, which is significantly lower than the retail price.
]]>In real life, there are a lot of people who think you can't out-and-out lie in commercials because, you know, the government won't let them or something. If it were a scam the government would stop them, wouldn't it? Therefore it must be OK.
]]>I guess it would be too much to look into for a small amount of gold, but I imagine a person who got a good haul could find a better channel.
]]>You're welcome. BTW, jewelry does NOT depreciate. Gold is gold is gold once it's melted down, and an ounce of gold from 1920 is the same as an ounce of gold from 1980.
The one thing you do have to be aware of in terms of "aging" is that the quality of stones used in older jewelry tends to be far lower than stones in modern jewelry; it's a function of improved and more widespread mining.
I think you have a good plan there, to remove the diamonds (may want to have a professional have at that) and deal with the gold first, then have the diamonds appraised separately.
An ounce of gold is $907 today per goldprice.org. It's a traded commodity, so it's subject to fluctuation, but IIRC gold is at something like a 25-year high.
]]>Seriously, would you be caught dead wearing something you bought from HSN? Yuck!
]]>I'm going for Cash4Cash. Send me your cash. I'll appraise it and give you fair market value (in cash) in 7 to 10 days.
]]>The reason why companies like this exist is because there are people out there that are unwilling to educate themselves on these types of practices. You have a plethora of knowledge available to you.
I also wonder how people who fall for this have gold in the first place.
]]>Take it to a reputable local jeweler. Most will buy gold, especially since the price is going up. There's a jeweler around here who has "open houses" where people literally line up around the block with Ziploc bags full of gold jewelry, and he sits you down right in front of him, examines and weighs the pieces, and gives you cash on the barrelhead for it. My wife and I got nearly $1000 for nine or ten items (one of which was a heavy 18-karat bracelet.
Just give some local jewelers a ring (ah-ah-ah) and ask them if they buy gold.
]]>Free Credit...Report dot com.
You would'a seen it comin' at you
Like an atom bomb.
They couldn't put it on TV if it wasn't true!
]]>It's like somebody who has to tell you how smart they are...if they had to tell you, it's not really true!
]]>I don't know if this was your intent or not, but Bravo, sir:
]]>@edicius: Rob from Cockeyed.com did that with a bag of bolts etc spray painted gold...
He was recently offered $3000 by c4g.com to remove his website posting since it shows so high on the search engine...
]]>Clueless people are a billion dollar business. Desperate clueless people are triple that.
]]>@akronharry: Don't see why. He hasn't pooped in years.
]]>I'm looking forward to Cash4Electronics, Cash4Babies and Cash4KidnappedPeople in the near future
]]>Pawn shop anyone.
]]>Is there a possibility you can use their system to scam the scammers by claiming the "gold" you sent in was "lost" and get $100 from their insurers? I mean, if they're THAT lax that they lose people's gold in-house...
]]>:D
]]>@masonreloaded:
I'm betting that a lot of people who sell their jewelry out of desperation like the idea of a relatively anonymous transaction.
It seems like a large percentage of the commercial on TV right now are some form of scam or sketchy business practice. Cash4gold, DirectBuy, Freecreditreport.com, Extenz, Lipozene, and whatever Billy Mays is shilling.
Someone needs to start an internet effort to get people to request cash4gold envelopes and fill them with gumball machine "gold" jewelry before sending back.
]]>@chenry:
When I was in the bahamas, there was a market that you could get a deal like that...
]]>I can't imagine anyone going to the trouble to steal gold jewelry using this as a fence. Unless they were incredibly stupid.
"Burglar Sues Cash4Gold; Claims His Check Was Too Small"
]]>Now that I think about it, that is really sad that we know it that well.
]]>I feel sorry for Ed McMahon. He has essentially sold his soul to the devil to do that ad...
]]>That is what I was thinking... just spray a bunch of rocks with gold paint and put them in the mailer... wouldn't cash4gold have to eat the postage bill?
]]>How many people actually have a significant amount of gold jewelry just laying around their house? I have my wedding rings and a few necklaces, but the people on these commercials act like we are all walking around blinged out from head to toe.
]]>Also this company fails 2 of my criteria for me to consider it a reputable buisness: it contains the word "cash" in the business name and it needlessly replaces a word with a number.
]]>Actually I'm guessing (totally unsubstantiated) 8 out of 10 people who use the service have stolen the gold.
]]>@savdavid:
To my 79 year old mom, somewhat impared but not enough for us to take away her ability to manage her own funds, this looks great. No driving or negotiating, she thinks. For old jewelery, some extra money. Shame on them. Terrible karma. It breaks my heart.
I also thought this might encourage more theft; it seems a pretty easy way to get $ for stolen jewelery without having to go to a pawn shop locally and open goods up to possible police scrutiny.
]]>@MameDennis: Heheheh...
That ad was totally playing into my nostalgic love for the Hammer.. Which I'm sure was the whole idea in the first place.
"This medalian of me wearing a medalian!"
I admit though I was suprised that he took part in it.. I knew he was hurtin (heh.) for money a few years ago.. but then he became a minister on TV.. so I thought he'd be above this..
I guess not...
]]>Too bad they are advertising to others who will be taken in on the scam...... and I just wonder how many senior citizens who are low on cash are shipping off their gold for 1/10th the value.... and are happy because they just don't know any better.
Sad.
]]>@Mary Marsala with Fries:
Yes, but if you just stole a bag full of gold jewelry on your recent crime spree then you can't exactly take that to a local pawn shop. This is a service for people who don't want the items to be found in the local market. Get rid of it, melt it down, and make sure it never points back to me. This company is little more than a chop shop for jewelry.
Any bets?
]]>I just think it is a terrible thing to advertise. "Give us gold and we'll give you money! Beg, borrow, or steal it! We don't care where it came from, just as long as it is GOLD! Your mother's rings, that stranger's watch, a jewlery store display... It doesn't matter! Send us gold and we'll send you money!!"
Yeah, that sounds like a really ethical and reasonable company. They are no better than the check cashing places that take advantage of people who are already in financial trouble or else why would they be there? They know people desperate enough to send them gold in exchange for far less than it is worth aren't in any position to take action against the compnay when they get screwed. It is a sad commentary of our time when companies like this grow to the size that they can afford to advertise on the superbowl.
]]>Spend it wisely Ben!
]]>Yeah, if my coworkers or friends did it, I'd laugh, but if my elderly grandfather thought he might be able to get some real money from it, I'd be furious.
]]>honestly I've always looked at those commercials and thought, "SCAM!!" None of this shocks me at all...I only wish more people who watch those commercials had the savvy and common sense to realize.
]]>I have a hard time considering this to be a scam. You send them items, they offer to buy them for a certain price. You accept or decline. There isn't any law saying someone has to offer you full market price for what you're selling. It's basically a garage sale by mail.
The real story here is the working conditions and issues OSHA might have questions about.
]]>Question,
I remember reading about a guy who would send credit card companies old tires and things of that nature back with the buisness reply envelope included in the credit card offer.
What if everyone were to request the "refiners" pack and the just send in a bunch of junk, (like old tires and bricks) wouldn't cash4gold have to then pay the shipping costs? A little payback from the consumer..
]]>@rpm773: Geography definitely plays into it--funny you should mention that. Now if you'll excuse me, I have to go order some DSLR cameras and home theatre electronics from Brooklyn.
]]>@Kimaroo:
Please, Hammer.... don't hurt him!
(Sorry, I know, bad Mame...)
]]>On the other hand, anyone stupid enough to get involved with them gets what they deserve.
I'm deeply conflicted.
]]>$0.01/FOR GOLD!
Thanks for the tip :) For those who didn't already know what a sham (wow!) this was, this is the deal breaker.
]]>But The Hammer says it's awesome! Why would he lie to me? : /
]]>You mean my gold toilet (as seen on the Super Bowl) has to be additionally insured at the post office if I think it is worth over 100 dollars? SHould I clean out the trap of the toilet before sending?
Ed McMahon