Enquiry announced as Which? reports damns postal gold value
The Office of Fair Trading (OFT) has launched an investigation into postal cash for gold companies to “consider whether they are complying with consumer protection legislation”.
The OFT is investigating whether the companies are honouring consumers’ rights to reject offers and have their jewellery returned, following a number of complaints. The OFT will also consider whether the companies’ terms and conditions are fair to consumers.
Juliet Young, a director in the OFT’s Consumer Market Group, said: “Buying gold using the postal service is a relatively new business model, and while innovation often brings benefits for consumers, we want to check that the market and businesses operating in it are developing in a way that treats customers fairly.”
The investigation coincides with a report from consumer organisation Which? that found that postal gold companies offer “shockingly bad value”.
The report claimed that CashMyGold offered the lowest prices. Money4Gold and Postal Gold also came off badly when the organisation compared the prices offered by these organisations compared with prices offered by traditional high street jewellers and pawnbrokers.
Which? chief executive Peter Vicary-Smith said: “The poor value for money that these TV gold buyers are providing is simply shocking. The cash for gold market is unregulated, and this investigation has raised some serious concerns about the fair treatment of consumers.”
The OFT has not revealed which companies it has requested information from as part of its investigation.