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Consumer Updates


Agreement Provides Restitution to U.S. Money Reserve Customers




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November 17, 2011 | 1553 views | 1 comment

Texas Attorney General resolves investigation into commemorative coin marketer

AUSTIN -- The Texas Attorney General’s Office today resolved its investigation into U.S. Money Reserve Inc., an Austin-based commemorative coin marketer that does business as U.S. Rare Coin and Bullion Reserve. Under today’s agreement, U.S. Money Reserve must provide $5 million in restitution to its customers and comply with the Texas Deceptive Trade Practices Act in the future.

The State’s investigation into U.S. Money Reserve centered on the firm’s efforts to market commemorative gold coins. Customers who contacted U.S. Money Reserve to inquire about the gold bullion coins featured in its telelvision advertisements encountered sales personnel who urged them to buy more expensive commemorative coins. According to state investigators, U.S. Money Reserve’s sales team claimed that the commemorative coins would both retain and increase their value more effectively than ordinary bullion coins. However, the significantly higher prices that U.S. Money Reserve charged for its commemorative coins rendered the products so expensive that customers would not actually realize an increase in value for many years. The State’s investigation also addressed U.S. Money Reserve’s refund policy.

Under the agreement finalized this week, U.S. Money Reserve has agreed to fully reform its sales practices. The firm further agreed to conduct all aspects of its business in strict compliance with the Texas Deceptive Trade Practices Act. Finally, U.S. Money Reserve will provide up to $5 million in restitution to reimburse customers for their financial losses.

To inquire about eligibility for this restitution program, customers should contact U.S. Money Reserve at (800) 867-6101. The amount of restitution depends upon the date of purchase of coins.
 
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Elaine K.  
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November 17, 2011 11:29am
 
 
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