Cash4Gold supports legislation designed to regulate it and its competitors, according to a letter from the company’s president, Jeff Aronson. “Cash4Gold supports HR 4501, the Guarantee of a Legitimate Deal Act, and the provisions outlined in the bill,” Aronson wrote to two congressman who are backing the bill.
The House Subcommittee on Commerce, Trade and Consumer Protection is set to hold a hearing tomorrow on the bill, which was written in response to an investigation conducted by Congressman Anthony Weiner “into the deceitful business practices of mail-order gold dealers like Cash 4 Gold,” according to Weiner’s office.
The letter from Aronson reads, in part:
I understand that the Subcommittee on Commerce, Trade and Consumer Protection is considering the bill that you introduced to regulate the mail-in gold buying industry and may hold a hearing later this month to discuss this legislation. Cash4Gold supports HR 4501, the Guarantee of a Legitimate Deal Act, and the provisions you outlined in the bill.
As you may know, Cash4Gold worked closely with Florida officials to create and implement the first law of its kind regulating the mail-in gold buying industry and we welcome this national legislation to help increase transparency and openness.
I would like to extend a personal invitation to you and your staff to visit Cash4Gold’s high-security, state-of-the-art processing facility in Florida. The invitation is for any time convenient for you, but you may find it useful to tour the facility before the hearing. I believe that it would be invaluable to see our operation first-hand and to learn more about the industry you are interested in regulating.
If passed, the GOLD Act would give the FTC enforcement power over the mail-order gold industry. It would specifically allow the government to issue fines to companies that melt down a consumer’s gold without their permission before the return policy has ended, require companies to give consumers ample time to request a refund, and mandate that companies ensure returned jewelry is insured with the post office at the same value as the consumer originally insured it.
In prepared testimony, Charles Bell, Programs Director of Consumers Union (publisher of The Consumerist), said:
These … protections are consistent with both common sense and what
customers have a right to expect from this relatively unique type of business. As mentioned
above, the remote, relatively anonymous nature of the online, mail-in, cash-for-metals
transactions introduces new types of risks or uncertainty for the consumer. H.R. 4501 creates
fair rules of the road that help to address and minimize these risks, and clarify channels of
communication so both the consumer and the purchaser have appropriate rules and protocols to
minimize bad outcomes. For these reasons, Consumers Union strongly supports H.R. 4501, and urges its swift passage by the Congress.
In addition to Bell, parties testifying at tomorrow’s hearing will include James A. Kohm of the FTC and Cecilia L. Gardner of the Jewelers Vigilance Committee. Alas, MC Hammer is not expected to make an appearance.
Anthony Weiner – New York’s 9th District [Official Site]
Previously: The Article Cash4Gold Doesn’t Want You To Read