Gaithersburg Coin Exchange -- Terrible Service

I'm a pretty easygoing guy, but sometimes, vendors (both corporate and individual) make mistakes, and that's fine, it happens. It's when they don't own up to it and instead, skirt around the issue/make things up/etc., where my blood boils.

I bought some gold coins from Gaithersburg Coin Exchange (GCE) back on 12/10/07. I sent them a cashier's check the same day. The bank shows that funds were paid to Gaithersburg Coin Exchange on 12/17/07. (My bank and GCE's are the same National Bank.)

I called on 12/18/07 wondering what was up, and was told that they needed to hold cashier's checks for three weeks due to the large number of counterfeit cashier's checks they'd been receiving. I pointed out that their web site (and also the person who took my order) says: "Immediate delivery on receipt of cashier's check". The gentleman said that it didn't matter. All checks, cashier's checks or otherwise, are held.

I called this past Monday (1/14/08) to check back, as I hadn't received anything, nor heard anything, and one of the guys took my info and said he'd call back. I don't hear back.

I called again this morning (1/16/08) and talked to Bob and was told that my bank rejected the cashier's check as counterfeit, and to call my bank. (Mind you, they made no attempt to contact me because, evidently "We don't have your phone number." They certainly have my shipping address if nothing else...)

I call the Bank, and they tell me that the cashier's check is good and was paid on 12/17/07, to Gaithersburg Coin Exchange.

I call GCE back, and talked to Bob once again. He (in my opinion, rudely) told me that:

1. The cashier's check was "drawn on a dormant account in Texas."
2: We don't have time to check today.

It was 3pm in Maryland at the time, the Bank doesn't close until 6pm, and the customer service line for cashier's checks doesn't close until 9pm Eastern. He didn't care and said: "We've got a line of people out the door, I don't have time for this today." At this point, I'm sure Bob's just feeding me a load of crap, especially with the bit about the Cashier's Check not clearing/being counterfeit (not to mention the "line out the door," but I hang up anyway).. I called the Bank to confirm, and they agree -- Cashier's Checks aren't drawn on personal accounts -- they're drawn against the Bank, so there's no way he would've been told that it was drawn on a dormant account in Texas!

I don't yet have a resolution this issue as Bob "didn't have time" to figure this out, but as soon as I do, I'll post it. The experience thus far has left a rather bitter taste.

 

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I'm not sure if you live in Maryland or not ( your profile does not tell us) but have you thought about contacting the Maryland AG?

Get ready for the next line they will feed you: They can sell you gold coin alright. But not at Dec. 10 prices. They will gladly sell you all the gold coins you want at today's prices.

 

Aren't these the folks in CW with all the newly discovered wheat hoards by the pound and the self slabbed moderns? Vwap, how could you????

And HOBO is absolutly correct, kiss those Dec 10 prices goodbye

 

Time to talk to the state AG of wherever you live and the company's home state as well. Also time to talk to the feds as the check was recieved throught the mail and this is therefor mail fraud. Also check to see if bullion investment is controlled by the SEC as this might be construed as securitied fraud. In short do whatever you can think of to make their life miserable with any agency that might have some control over their business. Also think small, a complaint to the local licensing commissioner can do wonders (I know as I work in that department for the next town over).

Good luck
Richard

 

EDIT: Sorry, that would be Chattanoga

 

i live in maryland also and since the GCE is the only big coin store around me i went there when i didnt know anything about coins

The 2 first coins i bought one was harshly harshly cleaned while the other was overgraded and this was after waiting for 45 min for someone to help me. The only good thing about there is the selection. In those rotating display boxs they have tons of coins albeit overgraded/cleaned

 

I didn't subscribe to CW until very recently -- didn't know their rep as "one of those" companies.. Oops. (Found them from Perth Mint's distributor list.)

Nevertheless, it was a very straightforward transaction -- three specific coins plus shipping, paid using a cashier's check..

At this point, I've spoken with Marc (the owner) a couple times, and still, there's been no movement. I'm hearing things about how he's left messages "at the bank, with the people in the back," but he hasn't heard back. If this drags out until next week, letters will definitely be written. Something like this shouldn't take more than one call to resolve -- "Did we deposit cashier's check #____ for $____, did it clear? Yes, okay, thanks!", then ship the items.

But apparently it's more complex than that. Especially when they already have your money..

 

They sound like thieves. Report it to the AG and advise your bank. If they are local, try small claims court

 

i'm not too far from G'burg. i could have my friends with the bent noses pay them a visit.

that totally sucks, esp. given the price change over the past month - of course if it had gone down, you'd have to pay the December price. crooks i tell ya.

-steve

 

They are awful to deal with. Dealers don't even like dealing with them, but often do simply because they pay strong numbers for silver.

 

what has happened with this?

-Steve

 

So far, I've had to do all the legwork, but it seems to have (hopefully) paid off -- called my bank, got a copy of the cashier's check, faxed it to GCE. Sounds like they'll get it mailed.

Long version: Called GCE and after some amount of Back-And-Forth, they finally agreed to talk to their bank to figure it out. The next day, I called to follow up and apparently, "it seems the bank is quite busy, it's been snowy and they're probably shorthanded." I waited a couple more days and called again -- "Still nothing."

At this point, I'd talked to my bank and knew they'd be able to fax me a copy of the check (to the branch). I suggested that GCE call the line themselves, but they preferred to wait for the bank to call them back. Apparently they have "hundreds of deposits, and they have to look through each and every one of them to find your one deposit." -- I told them I'd just get a copy and fax it over.

I also called their bank and talked to the head teller there (who's worked with GCE), and he said he was familiar with the issue. He'd advised GCE to call the Official Items line (the same one I called to get a copy of my check), 'cause once the check is deposited by the bank, it was out of his hands.

(Apparently GCE interpreted the suggestion as: "They're still looking into the issue and are looking through our records for a copy of the check. We'll give you a call when we hear from them.")

Nevertheless, I did get a copy of my check and faxed it. After passing around a copy of the fax, they've agreed to release it for shipment. I'll believe it when I see it.

 

You are going to file a complaint with your state Attorney General?? I sure hope you submit your time line and complain loudly and often. And I hope everyone that has been following this thread now know where NOT to attempt to purchase. It is time the little guy quit having to take it in the shorts, and tell the big company "Yeah, well, this is one of your 'hundreds' of deposits you should not have lost."

 

This is crazy - why on earth does the buyer have to do all these paperworks? If the seller didn't like cashier check, he could have just said a no but since he accepted it, he should be the one doing the paperwork. Hope it goes well - I would make a fuss out of this as well. No reason why such sellers should be let away like this.

 

Keep raising a stink, if I were still in MD, I'd proxy for you, because I've been there in person once before, and talk about a-------les.

 

You may want to talk to your bank and explain that the cashier's check funds were stolen and ask them for assistance. Many banks will make a phone call or write a letter of inquiry for you these days as part of their customer service. Also think about asking a local police or FBI office what to do or if they can make a call for you. The right call from the right person will frighten the dealer enough to put your order in the mail. I wouldn't fool around with these guys any longer. Play hardball with them.

 

contact the Maryland Office of the Attorney General's Consumer Protection Division ASAP:

http://www.oag.state.md.us/Consumer/offices.htm

if you had waited patiently, you would never had received the goods for which they accepted payment - that is theft.

as an aside, I was discussing your situation with my father, a coin dealer in the DC area for over 40 years. I could tell by the look on his face you were in for trouble when I told him it was GCE. he told me many dealers have been burned over the years - he had one dealing with them in the mid 1960's and it was a huge hassle. he suggested you contact the AG and go after them.

-Steve

 

After reading this thread and knowing that I was going to Gaithersburg this week, I did go to the shop this mid morning.

It took well over 10 min for anyone to say anything to me at all. The place was looking a mess and inside the shop was a robust metals exchange with all kinds of silver being cashed in...
When I asked to see some specific notes of interest, I was told that they were to busy and that I would have to come back or call for an appointment.

WOW..what a mess the store was...maybe I should consider being the "Phantom Coin Shop Gourmet"

What a lousy review I would give these guys!!


RickieB

 

Very important - File a police report this is direct theft by deception. Get a copy of this report. File A BBB complaint as well as a complaint with the postmaster.

You will need to pressure these folks they know the check is good you have proved that. These guys are scum I was warned about them a few times and would not buy a postage stamp at face value from them.

You will need to send a formal demand ASAP and then decide if you need to pursue this through Superior court or small claims.

They will ship your items but not unless you pressure them this is there method of doing business. The non sense is just a way for them to keep your money longer until they send you a refund. I would be surprised if they made good and sent your gold at the price you bought it for. Dont let them off the hook.

Also I would suggest you post on the other 2 coin boards about your experience with these slimy folks.

 

Here's the update:

I received the coins yesterday, as ordered/paid for. Having had this experience, despite ending well, I'd definitely never deal with Gaithersburg Coin Exchange again (and would recommend that nobody else does, either).

After placing my order back in December, not once did I receive a call, promised or otherwise, back from GCE. Not when they cashed my "counterfeit" cashier's check. Not when they said they'd look into my order status (on multiple occasions). Not when they said they'd follow up in the morning after checking with the bank. ... Not a single one.

During my multiple phone calls, I was repeatedly told (in different ways, by different people) that they were much too busy to deal with me or my issue ("line out the door!"), or they were "waiting on the bank." (After speaking directly with their bank branch, they'd told GCE to check directly with Official Items -- it was out of the branch's hands; they weren't checking on anything!)

As far as I can tell, it doesn't seem like there was any intent to fulfill my order without action on my part -- to contact them, the bank, and do the runaround with everyone. I'm not sure they would've shipped my order had I not contacted them!

In the end, I'm pretty sure the "line out the door" was the line of customers, both "real" and virtual, leaving and not looking back.

Although I'm thankful I didn't have to resort to hardball tactics to get them to follow through, thanks to everyone here for their suggestions!