Understand the Company’s Reputation
Although technically it might be hard to prove at this stage that a gold and silver coin dealer operates as a coin scammer, don’t be misled about supposed consumer ratings about a company’s reputation that can be altered or modified. Even good ratings hide some very concerning issues.
The Better Business Bureau ratings are one indication, especially when it has received numerous complaints about a company’s aggressive sales tactics, issues with refunds/returns, and allegations of it specifically targeting elderly buyers.
Many consumers mistakenly believe the BBB is a government agency or consumer watchdog, when it is actually a private organization with no regulatory power. Shady coin dealers know the limitations of the BBB ratings and use them to misdirect consumers. According to the bureau’s website, “BBB ratings are not a guarantee of a business’s reliability or performance. BBB recommends that consumers consider a business’s BBB rating in addition to all other available information about the business.”
Beware of Aggressive Sales Tactics
If you see customer complaints mention that coin dealer’s representatives use aggressive sales tactics, for example, repeatedly calling even after being asked to stop, late deliveries, or refusal to honor a return policy, be aware.
This high-pressure approach is a red flag and can be a sign of a company trying to take advantage of customers, especially more vulnerable sections of the population like the elderly.
Verify Pricing and Fees
Most coin dealers use “loss leader” tactics, by offering an initial low-priced product and then trying to get the customer to buy additional, potentially overpriced items. Make sure to thoroughly research their pricing and any related fees before buying from them to make sure that you are getting a fair deal. Don’t be rushed to agree to terms on a recorded phone approval. Listen carefully.
Prioritize Customer Service and Transparency
If a coin dealer has mixed customer reviews and poor or no consumer rating, this indicates that it could have issues with customer service and transparency.
That is why you should rather look for a company that is upfront about its products, policies, and processes – one that consistently provides reliable and honest customer support.
Consider Alternative Precious Metals Dealers
Given the concerns raised about coin scammers, it may be wise for prospective buyers to explore other reputable precious metals dealers that have a better track record and more transparent business practices. Doing your due diligence here can go a long way to help you find a dealer that puts your investment goals and priorities first.
Coin Dealers That We Have Sued for These Tactics:
We have investigated numerous clients’ claims against coin dealers whom our clients believed used aggressive sales tactics to scam them out of life-savings. Some of those companies include: Nationwide Coin and Bullion Reserve, U.S. Gold Reserve, American Gold Reserve, US Money Reserve, Texas Bullion Exchange, and many others.
If you believe that you have been the victim of coin fraud, you are welcome to visit our website at Coinfraud.com. Or call us right now on 409-880-9714 to speak to one of our coin fraud lawyers.
