Crackdown Proposed on Gold Buying Services
By JCK Online Staff -- JCK Online, 4/17/2009 1:20:00 PM
Florida state lawmakers may crack down on mail-in jewelry businesses that accept jewelry in the mail in exchange for cash, according to a report on MyFox Tampa Bay.
A recently introduced bill would make mail-in jewelry dealers face some of the same laws as pawn shops, because, according to the bill’s sponsor, these businesses may be targets for jewelry thieves.
Senator Dan Gelber, D-Miami Beach, the bill’s sponsor, stated that few questions are asked in the selling process. The new law would require the companies to get driver's license numbers from sellers, hold items for 10 days before melting them down, and photograph every piece of jewelry they buy and share that database with police, the report said.
Such a crackdown would undoubtedly impact Cash4Gold, the most high-profile of all the gold buying services, which is based out of Pompano Beach, Florida. According to one report, Cash4Gold supports the proposed law.
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The idea of regulating this industry is a good one, unfortunately by the time the legislative process winds its way through the legal system it's likely that metal prices will have stabilized, the economy will be back on its feet and most of these flash-in-the-pan operators will be long gone. Add to that the likelihood that they will just set up drop boxes in unregulated states if legislation does pass in Florida.
On a related note; legislators should also look at all the "home gold party" operators out there buying up gold with zero oversight or regulation.
Ulises Garcia - 2009-20-4 14:03:00 EDT -
These companies should (at a minimum) be held to the same rules that all other Florida jewelers are required to abide by. The fact that they have been held to a diifferent set of standards is absolutely ridiculous.
W. Marvel - 2009-20-4 10:58:00 EDT -
A crackdown would mean they are going in and doing something right away. This is not the case. This is just an attempt to quiet the many people complaining about the unfair practices some of these companies commit. The ten day hold is insufficient for any real verification of property, and having someone write in a drivers license number on the form they fill in proves nothing. Jewelers in Florida have to hold 15 days and get a thumbprint on the receipt. Pawnbrokers must hold things 30 days and get a thumbprint. How would this be a crackdown?
Cliff Wardlow - 2009-20-4 10:15:00 EDT
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