madfranks
18th November 2011, 10:53 AM
How is it that people are so eager to throw thousands of dollars at coins they don't know anything about? Then after spending the money they research what they bought and demand restitution because they changed their minds? This sort of irresponsibility drives me nuts! And how come people who buy stocks can't get similar restitution when stock prices fall short of "expected gains"?
http://www.statesman.com/business/coin-marketer-agrees-to-pay-5-million-in-1977015.html
An Austin-based commemorative coin marketer has agreed to pay $5 million in restitution to customers to settle allegations of deceptive trade practices.
Under an agreement with the Texas attorney general's office, U.S. Money Reserve Inc. — which does business as U.S. Rare Coin and Bullion Reserve — admitted no wrongdoing but agreed to change its sales practices.
In an investigation into the company's marketing of commemorative gold coins, state officials said customers looking to purchase gold bullion coins featured in television ads were urged by sales staff to buy "more expensive commemorative coins," according to news release from the attorney general's office.
"According to state investigators, U.S. Money Reserve's sales team claimed that the commemorative coins would both retain and increase their value more effectively than ordinary bullion coins," the release said. "However, the significantly higher prices that U.S. Money Reserve charged for its commemorative coins rendered the products so expensive that customers would not actually realize an increase in value for many years."
In a compliance agreement filed in state District Court in Travis County, the state also noted that "what is true for the bullion gold market is not necessarily true for the commemorative gold coin or proof gold coin markets. The value of commemorative and proof coins is based on subjective factors, such as age, rarity and condition."
C. Jake Posey, an attorney for U.S. Money Reserve, did not return a phone call for comment.
Although U.S. Money Reserve didn't admit wrongdoing, the company agreed to comply with a number of terms, including not misrepresenting the expected growth in the value of a coin and not misrepresenting the rarity of a coin.
The company agreed to provide $5 million to reimburse customers for their losses. Customers interested in the restitution may contact U.S. Money Reserve at 800-867-6101 .
http://www.statesman.com/business/coin-marketer-agrees-to-pay-5-million-in-1977015.html
An Austin-based commemorative coin marketer has agreed to pay $5 million in restitution to customers to settle allegations of deceptive trade practices.
Under an agreement with the Texas attorney general's office, U.S. Money Reserve Inc. — which does business as U.S. Rare Coin and Bullion Reserve — admitted no wrongdoing but agreed to change its sales practices.
In an investigation into the company's marketing of commemorative gold coins, state officials said customers looking to purchase gold bullion coins featured in television ads were urged by sales staff to buy "more expensive commemorative coins," according to news release from the attorney general's office.
"According to state investigators, U.S. Money Reserve's sales team claimed that the commemorative coins would both retain and increase their value more effectively than ordinary bullion coins," the release said. "However, the significantly higher prices that U.S. Money Reserve charged for its commemorative coins rendered the products so expensive that customers would not actually realize an increase in value for many years."
In a compliance agreement filed in state District Court in Travis County, the state also noted that "what is true for the bullion gold market is not necessarily true for the commemorative gold coin or proof gold coin markets. The value of commemorative and proof coins is based on subjective factors, such as age, rarity and condition."
C. Jake Posey, an attorney for U.S. Money Reserve, did not return a phone call for comment.
Although U.S. Money Reserve didn't admit wrongdoing, the company agreed to comply with a number of terms, including not misrepresenting the expected growth in the value of a coin and not misrepresenting the rarity of a coin.
The company agreed to provide $5 million to reimburse customers for their losses. Customers interested in the restitution may contact U.S. Money Reserve at 800-867-6101 .