Cash4Gold Hit With Racketeering And Fraud Class Action Lawsuit

A class action lawsuit (PDF) was filed against Cash4Gold in California federal court last Friday, accusing the company of a "massive scheme to defraud tens of thousands of consumers throughout the nation," and racketeering.

The lawsuit says there are two specific promises that Cash4Gold makes and breaks: 1) that there is a 12-day return policy and 2) items sent in will be handled with the highest care. Cash4Gold breaks the first, claims the lawsuit, when checks are received by customers either after the return period is over or close to it, or when the company melts the jewelry before the expiration of the return period - allegedly a frequent occurrence.

Cash4Gold breaks the second when it "repeatedly 'loses' the items sent," frequently blaming the mail service for "an absurdly high number of 'lost' items," according to the suit.


http://consumerist.com/5381412/cash...action-lawsuit?skyline=true&s=x

 

Couldn't have happened to more deserving folks!

They will lose, the lawyers will get all the money if there is any, and the stupid fools who sent their gold in will get stiffed. 

They will lose, the lawyers will get all the money if there is any, and the stupid fools who sent their gold in will get stiffed. 

While it is true that in some class action suits, the class individuals don't seem to get a big amount of money, the main purpose of these cases is to put a stop to, to punish or to correct the alleged bad behavior of the defendants.  I have seen some class actions with smaller classes of plaintiffs where the actual damages were severe (health problems, etc) and the plaintiffs did get fairly big settlements.

The judge has to approve the attorney fees in class actions, and in most I have seen the award is not anywhere near the usual 1/3 of the award/settlement that you see in regular personal injury type cases.  Further, the plaintiffs do not have to pay anything to the attorneys, the defendants do.

A person can always opt out of a class action and hire their own attorney and go after a defendants if they want to.

Trash the lawyers all you want, but without them nothing would be done to go after whomever the alleged wrongdoing defendants might be in the world.

Jim

They will lose, the lawyers will get all the money if there is any, and the stupid fools who sent their gold in will get stiffed. 

The fools will get stiffed again. Dealing with "Ca$h for Gold" was a stiffing in the first place.

The first words out of their mouth on the commercial are,"Boy do I have a deal for you".

I used the remote to turn their lies to another channel for the same infro-mercial, where I proceeded to channel surf for a real show on the history of gold.

  First and foremost, yes these and others like them are definitely crooks. But the deal is the folks that sent in thier gold in hopes of getting rich quick were not forced at gun point to do so. They made a decision without doin' a little research first.
 I geuss what I am tryin' to say here is that the ones sending in the gold are not acually victims here, so don't be treatin' them as such. Would you send your car somewhere and just "hope" they give you what ya think it's worth ?
 I have said since day one that I heard about companies like this that one day they would eventually be shut down.  I am a firm believer that you can only scam folks and get away with it for so long. What goes around comes around.
  If you run a business of any kind you need to treat the customers right. It is just like anything else in life, you need to be fair and honest in whatever you do, or else it will catch up with you in the end.

 I'm thinkin the folks that sent their gold in for the most part weren't looking to "get rich quick", lol!

 I'm thinking most of their customers were probably people who needed cash. Lost their job, divorce, whatever..... and needed something to get by. These companies are simply preying on the weak and weak minded. I got the same opinion about these instant payday loans places too.

Took them long enough to go after these scammers.  Probably didn't happen until after some hotshot DA's grandmother got ripped off.  (If it was anybody else, "eh, we'll look into it....")

think again -- those folks at cash4gold paid pawn shop type prices * however unlike local area pawn shops --which require a ID to be presented and recorded at the time of sale ( records which cops can check --if say mr jones "pawn shop" sell 100 pieces of  gold jewelry in area --guess who the cops arte going to be looking at "hard" for local area B & E's ?----- by mailing it out of the area --crooks can easily dump their stolen gold easily and quickly for cash -- if they get beat on the "fair" price so what -- since the crooks got it for free

'Cash4Gold' may be put out of business, but the principals behind the company will just start a new company called Money4Gold (or similar) and the whole thing will start over again.

yep the old --new name under a differant brothers name hustle -- scum like this are like cockroaches hard to get rid of .

It's the "shop around" before you do business routine. If these gullible people would only do just that, then we would rid some of these scammers out of business faster.

Hopefully, the lawsuit will bring these folks "into the light" at least.

But, they will just form another LLC, in a different name and continue business as usual.

People who pray on the neediest of people are lower than a slithering snake.  I'm sure there are people who probably sent stuff in they really didn't want to part with, but didn't want to ask for public help. 

B

They will lose, the lawyers will get all the money if there is any, and the stupid fools who sent their gold in will get stiffed. 

While it is true that in some class action suits, the class individuals don't seem to get a big amount of money, the main purpose of these cases is to put a stop to, to punish or to correct the alleged bad behavior of the defendants.  I have seen some class actions with smaller classes of plaintiffs where the actual damages were severe (health problems, etc) and the plaintiffs did get fairly big settlements.

The judge has to approve the attorney fees in class actions, and in most I have seen the award is not anywhere near the usual 1/3 of the award/settlement that you see in regular personal injury type cases.  Further, the plaintiffs do not have to pay anything to the attorneys, the defendants do.

A person can always opt out of a class action and hire their own attorney and go after a defendants if they want to.

Trash the lawyers all you want, but without them nothing would be done to go after whomever the alleged wrongdoing defendants might be in the world.

Jim

Well said But The Unfortunat truth is If a lawyer is the wrongdoer You dont get to sue them and they should be as sueable, and more so than Doctors. Iv seen lawyers encourage clients to sue, as if the suit was winnable all the time costing both parties money and knowing all along the suit couldent be won. Lets say im wright... can the  person sue the lawyer. NO he cant.
  Lets say im wrong can the person sue the lawyer NO he Cant!

 so yes, lawyers can perform Mallpractice and walk away scott free. Thats why folks hate lawyers.

Well, there is such a thing known as suing your lawyer.

They are sued for malpractice, breach of fiduciary duty (quite serious), and negligence.  You can not only win, the bar association will also usually step in and cause MORE pain to your attorney.

The biggest problem is finding an lawyer to represent you. (catch 22, there) Its much like medical malpractice - doctors aren't eager to diss other doctors.

That's one of my issues of tort reform - if tort reform goes through the way some want it (minimum awards, etc), it doesn't just pertain to medical issues - it will limit ALL kinds of lawsuits - including lawsuits against your lawyer.

B

I can understand the crooks mailing in gold to those thieves, but I cannot believe lawabiding citizens can be so STU PID as to mail their good items through the mail to ANYBODY.  All they have to do is check the current world spot value for the various precious metals, find a local pawnshop OR jeweler and go from there.  But, no; they'll put their goods into an envelope with the printing on the outside saying something like: CASH4GOLD, etc and drop it into the mail.  Again, I say STU PID. That business has a ready made excuse for covering up their theft ( we didn't get it) or someone in the USPS reads those big letters on that envelop, and drops the package into their own pocket.   

Well, there is such a thing known as suing your lawyer.

They are sued for malpractice, breach of fiduciary duty (quite serious), and negligence.  You can not only win, the bar association will also usually step in and cause MORE pain to your attorney.

The biggest problem is finding an lawyer to represent you. (catch 22, there) Its much like medical malpractice - doctors aren't eager to diss other doctors.

That's one of my issues of tort reform - if tort reform goes through the way some want it (minimum awards, etc), it doesn't just pertain to medical issues - it will limit ALL kinds of lawsuits - including lawsuits against your lawyer.

B
[goute]

Well said and ive never seen a lawyer that would sue another lawyer, they just dont exist

Shortstack,

You are right - but -- remember - we keep track and know about.

There is a whole world out there that know nothing about precious metals, metal detecting, coins - none of that stuff.

It's not stupidity - its naivety - they just don't know.  People tell them gold is selling high - so, they figure they will sell some.

It's only stupidity if you get ripped off and then do it again.  If they weren't naive, the companies would go away.

They pray on the naive and the poor.  Some of the other people in the world don't know what a coin shop is.

B

Jim4silver wont responde to this, hes a lawyer and he knows it to be true.

Jim4silver wont responde to this, hes a lawyer and he knows it to be true.

Oh really?  Actually your view is not accurate.  Mrs. Oroblanco is right.

Lawyers pay quite a bit for malpractice coverage each year.  Not as much doctors, but not peanuts either.  Check your state's laws and you will see that lawyers can be sued for malpractice.

When your kid gets arrested or you get a DUI or your wife wants a divorce, who you gonna call?

I was not defending all lawyers across the board, because there are bad ones out there.  But they do get sued and many do get disbarred.  People who say "all lawyers are bad" are like people who say  "all cops are bad".  May sound good and be the popular thing to say but is not true.

Behind every lawyer is a client that lawyer is representing.  People like to get mad at the lawyer but they should really be mad at the client instead.

What makes you think I am a lawyer?

Jim

Just trying to  find out, you havent said you are or not yet either.
 As Mrs O said Good luck finding a Lawyer to sue another one.  Personly I belive Lawyers (though needed somtimes ) are still just another College boy Frat club cornering a Market, and chargeing WAY more than they are worth.

  IMO

They pray on the naive and the poor.  Some of the other people in the world don't know what a coin shop is.

So true. I was in my favorite (and trusted) coin shop yesterday and the guy in front of me had a box full of quarters. So many that I thought he did coin roll hunting. He wanted to sell his silver and I know this shop pays the best. So the lady pours the coins on her counting tray and starts giving quarters back to the guy. More than half were clad.

His dad had died and his mother wanted him to cash them in. He knew just enough to go to a coin store. Most people, I would think, will go to a bank and just deposit the whole thing to make some silver hunter happy.

While it is true that in some class action suits, the class individuals don't seem to get a big amount of money, the main purpose of these cases is to put a stop to, to punish or to correct the alleged bad behavior of the defendants. 

That has got to be about the most false generalization I have ever read Jim, with all due respect. I have been unintentionally involved in 5 Class action lawsuits now, where the law firms got millions and people like me who were supposidly wronged, got cents... I got one check from AT&T that was for $0.42, when according to the lawsuit, I was screwed for at least $50-60, and the law firms take was $9 million.... Now, you will probably say that "well, they put all this money into the case, researching, etc..", but I have a niece that was a law student and quit because she was tired of "working for free" for law firms as a requirement for school, to search legal records, firms, etc., for possible class action suits.. They paid her nothing for this..
Lawyers are in it for themselves. Maybe not at first, but they all succumb to the easy millions that tort suits and class action suits can bring.. How many lawyers have hit paydirt (Edwards for example), and then use that money to run for office? Many, many of them do.... How many politicians have never been, or are, lawyers? Very, very few....

I just sent in $9438. in Gold coins and bars to AMPEX I had my check within 1 week they paid more then spot price and the check didn't bounce! What more could I ask for!. I have many more rolls of gold and silver eagles I would not hesitate to send to them again. I knew what they were going to pay me BEFORE I sent it in. They put it in writing and honored their price even though the gold price went down during shipping. There are honest dealers out there!