The parent company of Cash4Gold has been hit with a class-action lawsuit claiming that the company misrepresented its services and defrauded customers who sent in their jewelry for cash.

The lawsuit was filed on behalf of two California women. Attorneys representing the case want the court to open the lawsuit to all “who suffered injury from Cash4Gold’s unlawful practices from October 6, 2003 and October 6 2009.”

There are three specific frauds named in the “unlawful behavior” of Cash4Gold’s business practices.

The first is the claim of providing the “highest care” for items mailed to their facility. Plaintiffs claim this is a lie as many items are commonly “lost”. A high degree of care is not exercised and at worse items are intentionally stolen.

The second allegation involves Cash4Gold’s 12 day return policy, in which customers are promised to have their jewelry returned if they are not satisfied with the cash offered.

The lawsuit alleges that return policy is also a lie. It is claimed that Cash4Gold issues the payment checks but mails the checks days later making it impossible for the customer to receive it within the 12-day return policy allotment. It also stated that a lot of the jewelry was already melted down, knowing that the customer had no recourse of having the items returned based on the check mailing schedule.

The third is the creation by Cash4Gold a “customer service” staff that deliberately lies and frustrates customers to support the other two frauds of stealing jewelry and fabricating a bogus return policy.

The plaintiffs are also asking for permanent injunctions against Cash4Gold preventing the company from “utilizing any monies acquired by its unfair business practice, and for compensatory, actual and punitive damages.

Cash4Gold has denied the allegations in a written a response to mailed to the National Jeweler. The company said the suit has no merit and will vigorously defend its case.

Russell Oshita, the diamonddude
The Diamond Specialists Inc.
Diamonds Hawaii