OFT clamps down on gold-for-cash firms

The Office of Fair Trading (OFT) has warned firms offering to buy gold from consumers by post to tighten their business practices and provide more information on their prices and services.

CashMyGold, Cash4Gold and Postal Gold have been warned to make changes while CashYourGoldNow and Money4Gold have had to cease trading already following investigations.

The OFT says people were being locked into accepting the offer that had been made for their gold.

It was particularly concerned with the practice of sending consumers a payment and taking any ‘silence' within restrictive time periods as a sign of acceptance.

Heather Clayton, senior director of the OFT's Consumer Group, says: "These days we see more and more new business models which involve consumers distance selling goods to firms.

"These options are good for consumers, providing business practices are fair. Where we see problems, however, we are keen to intervene early so that these markets develop with an appropriate level of consumer protection.

"Any companies operating similar business models must make sure they treat consumers properly and provide clear information on how the service operates so that people make informed decisions about whether they wish to part with their possessions."