CORPUS CHRISTI (Kiii News) - Alan Bligh with the Better Business Bureau joins John Thomas on 3 News First Edition to warn consumers about buying gold from U.S. Money Reserve, as well as to talk about the scam of the week.
U.S. Money Reserveagreed to an Assurance of Voluntary Compliance with the Texas Attorney Generalon November 15, 2011. The results of this agreement included:
1) Consumers whopurchased qualifying coins from U.S. Money Reserve between May 1, 2005 andDecember 31, 2010 may be eligible for refunds from the company.
- Consumers must contact the company byphone (1-800-867-6101) to arrangethe return of their coins
2) U.S. Money Reservemust reform its sales practices to include additional disclosures regarding thecoins sold to consumers.
Complaints received by the BBB allege that consumerscontacted the company for government issued coins "at cost" and feltpressured to buy more expensive collectible coins, which were represented asbeing a better investment.
Bligh says consumers further alleged they later found out through independentappraisal that the collectible coins were not worth the price they paid forthem
The BBB has given the U.S. Money Reserve an "F" rating. Factors that caused this rating include:
1) Advertisingissues found by BBB.
2) 41 complaintsfiled against the business.
3) Two seriouscomplaints filed against the business.
4) Governmentaction against the business.
5) The business hasfailed to resolve the underlying cause of a pattern of complaints.
CompanyResponse to Complaints:
The companyresponded to consumer complaints by stating that coin dealers may not alwaysappraise certified coins appropriately since their profit margins depend on thecost at which they acquire coins. Therefore, an individual will most likely notreceive the full market value for their certified coins from a coin dealer.
The BBB filesindicate the company generally responds to consumer complaints by explainingthe return policy on the coins, and in some cases offering full refunds.
Advertising Issues:
The BBB hasconcerns that the general layout of the company's website and print advertisements implies an affiliation with the U.S. Government.
Bligh says the ads did not substantiate claims relating to the investment potential of thecoins such as "Experts Predict $5,000/oz" and ""$50,000 in U.S. GovernmentGold Coins could be worth up to $250,000 in the future."
Scam of the Week
Bligh also talks about the scam of the week involving "Smishing."
"Smishing" stands for "short message phishing,"and occurs when a scammer sends a text message to a cell phone in order to baitthe victim into divulging personal information.
The bait can be several thingsincluding:
1) Free items like an iPador laptop.
2) Lottery or sweepstakes winnings.
3) Lowering the interest rate on credit cards or debt owed.
4) Bank account was suspended or frozen.
According to online security firm Trusteer, cellphone users are three times more likely to fall for fake messages than computerusers.
How does itwork?
1) You are given instructions to dial a phone number which has an automatedservice asking for personal information, like your debit card PIN. Anything youenter will be stolen by the scammer.
2) You are instructed to click on a URL which takesyou to an official looking webpage that will ask for you to confirm yourpersonal information. Anything you submit will be stolen.
