The Office of Fair Trading is investigating a number of ‘cash for gold’ businesses after a barrage of complaints from consumers who believe they have been ripped off.
According to one Trading Standards official, some consumers are getting only 10 per cent of the value of their gold from companies which operate through the post. She claimed that there was nothing Trading Standards can do, as the companies are not doing anything illegal, but advised consumers to shop around.
The issue was first exposed earlier this year by consumer group Which?, following a flurry of DRTV ads urging consumers to cash in their gold via the post. Which? claimed the firms offer “shockingly bad value”.
And this week, the practice has been exposed on BBC One’s Rip Off Britain, which included an interview with Trading Standards.
The representative refused to say how many complaints the organisation has had; saying only that it was an “ongoing issue” but she did confirm that the OFT was investigating a number of companies.
Urging consumer caution, she added: “We haven’t found a single mail firm who can match the high street price offered by jewellers and pawn shops.” However, the firms insist the prices they offer reflect the fact they have different costs.
