Postal Gold rush under investigation

[TrueBlueTerrier]

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The Trading Standards Institute is investigating Postal Gold, a company that offers money in return for gold items sent in by customers. Jenny Wivell reports.

The recession has prompted a surge in companies offering cash in return for your old gold jewellery.

As the price of gold hits a record high, with investors willing to pay over $1200 an an ounce, Channel 4 News at Noon has learnt that the Trading Standards Institute has launched an investigation into those companies which promise to return your gold by post if you are not happy with the price they are offering.

When Danny Hatchard was offered £87 by Postal Gold for a bracelet he thought was worth £500, he decided he wouldd rather have his jewellery back.

He said: "I sent off the cheque straight away, as soon as I received it, and they didn't get back to me so I kept ringing them up and they just wouldn't answer their phone.

"I just kept getting back to voicemail and I left the my details, everything they needed to get back in touch with me in order for them to not refine my jewellery but they still refined it without my permission."

Postal Gold state in their information pack, jewellery will be melted down seven days after a payment has been issued unless customers return cheques.

In response to Danny Hatchard's complaint, Postal Gold has said he sent his payment back to the wrong office.

Along with other consumers Danny has also complained to Trading Standards, who believe he was treated unfairly and are investigating whether this way of doing business breaches trading regulations.

Trading Standards told Channel 4 News: "For there to be a contract there has to be an offer and there has to be an acceptance, and for that acceptance, there must be a positive act in other words the consumer saying "Yes I'll accept your offer to buy the gold".

"For the trader just to say 'you don't have to say anything I'll assume that means you accept' probably isn't sufficient in law.

"If a trader wanted to give you a period, seven days from the date of issue of a cheque for the cheque to actually be physically returned to the trader is clearly not acceptable."

Postal Gold told Channel 4 News: "Postal Gold has recently taken an industry lead to increase the cancellation period to 10 days and add an additional seven days to return the payment."

"All Postal Gold jewellery is independently assessed by trained and qualified assayers to enable the company to offer customers appropriate valuations."

With the price of gold higher now than it has been for decades trading standards is urging consumers to shop around for a good price.

[shadow]

I think these company's are sending out the gold packs on the offchance that people will give it a try as I delivered quite a few today. I don't beleive that all these packs were requested on the same day.

[DGP1]

I've always thought of it to be a thieves paradise. Steal some gold, send it off, get the money, buy some drugs and then do it all again.

[smokerjim]

I've always thought of it to be a thieves paradise. Steal some gold, send it off, get the money, buy some drugs and then do it all again.

That was my initial reaction - if you have some kosher gold to dispose of ( ie, not moody or hot ) then go down to a jeweller's and ask them how much.....and if you look like a junkie, they won't ( shouldn't ) deal with you.

Mind you, some will only have themselves to blame....I delivered one of those envelopes the other week, and a few hrs later, back at the office, a rural driver was saying someone had dumped a reggie in the box, and what was he supposed to do with it - treat it as a reggie, or as normal mail? It got sent with all the other SDs, but, if it disappeared, who'd get the blame, especially for demanding a proof of posting the customer doesn't have?