Thursday, July 1, 2010

New Jersey Pawnbrokers, Jewelry Buyers Cited for Looting Customers


Alicia Cruz
The Black Urban Times

A Ramsey pawnbroker operating out of a auto dealership was among 49 gold and jewelry buying businesses cited by state regulators Thursday for a wide range of violations, including allegedly having inaccurate or un-certified scales, resulting in consumers receiving less money than they deserved.

The statewide inspection sweep by the state Office of Weights and Measures, part of the Division of Consumer Affairs, issued more than 1,600 summonses for the alleged violations of state statutes. The companies face a potential civil penalty $100 to $500 for each violation conviction. The task force conducted surprise inspections of jewelry stores and transient buyers of gold and jewelry who normally operate out of hotels.

Gem Pawnbrokers, a Brooklyn, N.Y. based company was cited for nine violations, including using un-certified scales and scales that were not sealed, as required by law, while working on a “trade in anything” promotion at the Prestige Toyota dealership in Ramsey. The promotion encouraged potential customers to bring in “anything of value,” including jewelry to receive cash toward the purchase of a vehicle.

A spokesman for Gem said the violations were merely an oversight that it is fixing.

“Our scales were certified for the State of New York, but were not certified for the state of New Jersey,” spokesman Kenneth Conn said. “It was an oversight and we’re getting our scales in compliance.”

Prestige Toyota was not cited for any violations.

The Precious Metals Task Force was also among the businesses cited. working with county weights and measures offices, commenced its inspections in June following receipt of a consumer complaint, the state said.

The businesses were cited for violations of laws that require detailed receipts to be provided to sellers, as well as for the use of scales that were found to be unregistered, not inspected, not approved for use in New Jersey, and that had been unsealed and tampered with.

According to an article in the New Jersey Record, “Some of the buyers defrauded consumers, short-weighing their items and likely paying them less than the true value of the items,” Attorney General Paula T. Dow said in a statement. “We found violations statewide, and we’re putting the industry on notice that we won’t tolerate the cheating of consumers.”

No Bergen, Passaic or Morris county businesses were cited, but businesses in Newark, seven in Jersey City, six in Elizabeth and five in Atlantic City were.

Consumers with concerns about gold and jewelry buyers can contact the State Office of Weights and Measures directly at 732-815-4840.

Complaints also can be filed online at njconsumeraffairs.gov.

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