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Consumer Complaints

BBB Accredited Business since 01/27/2015

Goldline, LLC

Phone: (310) 587-1430

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Customer Complaints Summary

4 complaints closed with BBB in last 3 years | 2 closed in last 12 months
Complaint TypeTotal Closed Complaints
Advertising / Sales Issues1
Problems with Product / Service3
Billing / Collection Issues0
Delivery Issues0
Guarantee / Warranty Issues0
Total Closed Complaints4

Complaint Breakdown by Resolution

Complaint Resolution Log (4)
12/22/2015Problems with Product / Service | Read Complaint Details
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Complaint
I have not received my gold . I have been given the run around .
I suppose to receive gold coins never received them . I put 700.00 in the accumalation program
and never received my gold .

Desired Settlement
refund

Business Response
Contact Name and Title: **** *******
Contact Phone: XXXXXXXXXX
Contact Email: ********@goldline.com
We appreciate the opportunity to respond to our client's concerns regarding delivery of his gold coins purchased under Goldline's Accumulation Program. Prior to receipt of this complaint, Goldline repeatedly attempted to contact him regarding his request to cancel his participation in the accumulation program and to understand two credit card disputes he initiated regarding his coin purchases. Our last message for him was left on December 1, 2015. At no time did he return our calls until after he filed this complaint with the BBB.

The client finally returned our calls on December 8 at which time he asked for delivery of his coins (in his BBB complaint, he requested a refund of his purchases). We attempted to confirm this request for delivery leaving three messages for him. When he did not return our calls, we cancelled all purchases and are processing a complete refund to his credit cards.

Although we have agreed to the client's request for a full refund, we believe his complaint lacks merit. When he requested delivery of his coins, there were two issues that required resolution before delivery could be made. The first concerned his credit card disputes. During the pendency of those disputes, Goldline could not determine whether a portion of his payment would be charged back by the credit card company. If this chargeback occurred, then a portion of the purchase price would remain unpaid. Stated another way, Goldline could not know how many coins to deliver to the client until it was determined whether his credit card payments would be affirmed by the credit card company.

Additionally, the client had a balance owing on one of his four purchased coins (this is because Goldline's Accumulation Program allows clients to pay a fixed amount every month towards the purchase of a whole coin; once the entire coin is paid for, it may be delivered to the client). Thus, Goldline repeatedly contacted the client to determine if he wanted to pay the balance or have Goldline liquidate the partial coin and remit the liquidation amount to him. Until we heard from him on his credit card disputes and the unpaid balance, we were prevented from delivering the coins to him.

Please feel free to contact me if you have any questions.

Sincerely,
********* LLC
**** *******
Director of Client Relations
Tel: ************
Fax: ************

12/21/2015Problems with Product / Service | Read Complaint Details
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Complaint
I agreed to purchase, paid for product and never received the product. Requested refund, but it has not been issued.
On October 29, 2015 I agreed to purchase 15 units of gold at a unit price of $177.64, for a total purchase price of $2,664.60. They sent me a contract to open an account with them. I do not want to open an account, I just want to receive my gold. ******* ******* their representative, said he couldn't send me the gold unless I signed the contract. He agreed on November 5th to refund the purchase price to my American Express credit card. I have called him twice since then requesting this refund. During both of the subsequent calls, he said the refund was being processed and should be complete within a few days. My last call to him was about November 20th, but the refund has still not been issued.

Desired Settlement
Full refund of $2664.60.

Business Response
Contact Name and Title: **** *******
Contact Phone: XXX-XXX-XXXX
Contact Email: ********@goldline.com
We appreciate the opportunity to respond to the client's concerns about his cancellation and refund. Upon receipt of the complaint, we determined that, due to a clerical error, the client's cancellation and refund was still being processed.

After expediting the cancellation and notifying the client's credit card company to refund the payment, I contacted the client to apologize for the delay and to let him know that, for good client relations, Goldline is sending him a free silver coin.

Please feel free to contact me if you have any questions.

03/06/2014Advertising / Sales Issues | Read Complaint Details
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Complaint
I made an IRA rollover of $60,000 to Goldline Interntl, Inc on May 14, 2013. According to my June 2013 statement this IRA is only worth $38, 676.86.
I made an IRA rollover of $60,000 on May 14, 2013. I expected my IRA to still be worth approximately $60,000 minus some minimal maintenance fees ($60) and transaction fees ($40) as explained by Mr. **************** at Goldline. When I received my June 2013 Statement of Account from Goldstar Trust Company (the company that stores the coins purchased through Goldline) I found that the value of my $60,000 IRA was reduced to only $38, 676.86. This is a loss of $21,323.14 or 35.4% of my original IRA. This loss is not due to reductions in the price of gold or silver but due to the greedy business practices of Goldline International Inc. I am requesting return of my entire $60,000 IRA from Goldline.

I have asked Goldline for a refund by phone call, and later through a letter from an attorney at Parker Stanbury LLP sent on August 27, 2013. In a letter dated September 9, 2013 from ************ at Goldline, Goldline refused to make any refund of my IRA.

Goldline International Inc. uses deceptive marketing practices to profit from IRA rollover investments. They encourage investors to purchase gold and silver coins with huge markups of the price, as much as 50.2% markup in my case. Goldline International's own Account Agreement states that "If the spread for a coin is 28% and Goldline's ask/selling price is $500 for the coin, then Goldline's bid/buyback price is $360. In this example, the bid price of the coin would have to appreciate $140 (=$500-$360), or 38.88%, before breaking even (excluding liquidation fees and other costs)." A 38.88% appreciation of a coin is an unreasonable expectation in a short period of time.

As part of this rollover, Goldline purchased 420 Australian WW2 commerative coins costing me $10,191.75 with a market value of only $5,075.20 for a net loss of $5,116.55 or a 50.2% loss in value (see Table 1 below). How can this be fair?

I have also contacted the City Attorney's Office of Santa Monica California, the home of Goldline International to request a refund. According to a press release on February 22, 2012, the Santa Monica City Attorney's Office obtained a judgment and injunction against Goldline International Inc. The injunction "requires Goldline to change its unfair sales, practices and provide accurate price information to consumers. It also requires Goldline to refund up to $4.5 million to former customers and to pay $800,000 into a fund for future claims. The court has appointed a Monitor to ensure Goldline's compliance." A PDF Copy of the Final Judgement can be Viewed Here I have contacted the Monitors appointed by the City Attorney's Office, ************** and ***************, but so far have not received any refund or expectation of a refund.

Can the California BBB help me recover my IRA from Goldline International, Inc?

Table 1, Summary of June 2013 Statement Of Account from GoldStar Trust Company
Item No. Description Quantity Cost Basis Market Value Loss in Value ($) Loss in Value (%)
****** Canadian $5 Devils Brigade 42 $21,420.00 $12,859.56 $8,560.44 39.96%
****** American Eagle, XXXX X oz. 5 $8,506.75 $6,226.50 $2,280.25 26.81%
****** American Eagle, XXXX X oz. 4 $6,805.40 $4,981.20 $1,824.20 26.81%
****** American Eagle, XXXX X oz. 1 $1,701.35 $1,245.30 $456.05 26.81%
****** Bullion Bar, CRSU, .9995+ 1 oz. 4 $3,509.60 $2,639.60 $870.00 24.79%
***** Canadian Maple Leaf 1 oz. 4 $7,324.40 $5,385.66 $1,938.74 26.47%
****** American Eagle, XXXX X oz. 1 $32.66 $20.89 $11.77 36.04%
****** American Eagle, XXXX X oz. 9 $293.94 $188.01 $105.93 36.04%
****** Bullion Round, Australian WW2 1/2 oz. 520 $10,191.75 $5,075.20 $5,116.55 50.20%
Totals $59,785.85 $38,621.92 $21,163.93 35.40%

Desired Settlement
I am requesting a total refund of my entire $60,000 IRA from Goldline International, Inc.

Business Response
***SEE SCANNED DOCS***

Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
In the first sentence of the next to last paragraph on page 2 of the letter from Goldline dated January 20, 2014 they incorrectly stated "Mr. ****'s chart is misleading because it does not reflect the value of the products on the date of purchase (May 14, 2013)." My chart contains the exact values that Goldline charged me on the date of purchase of May 14, 2013. These values are shown on a Trade Confirmation from Goldline with a Trade Date of May 14, 2013.

I purchased the exact coins that were recommended to me by Goldline on May 14, 2013. The closing price for gold on May 14, 2013 was $1,425.70 per ounce and dropped to $1,240.90 on July 30, 2013 which is a 13% reduction in gold price. Other precious metals performed similarly. This 13% reduction in gold price does not account for the 36% reduction in value of my IRA when purchased on May 14, 2013 to the value on the GoldStar statement date of June 30, 2013. The additional 23% reduction in my IRA is due to the huge markup of the price of coins by Goldline. Goldline unfairly marks up their coins for sell to increase their profits.

I am still requesting a full refund from Goldline of my $60,000 IRA.


Final Business Response
Thank you for the opportunity to provide additional information regarding Mr. ****'s purchase. As Goldline's written trade confirmation reflects, Mr. **** purchased a mix of products that, prior to his discount, had either a 14.94% to 38.88% break even. However, Mr. **** received an additional (20) ½ oz. silver US-Australian WWII coins and (2) ¼ oz. gold Devils Brigade coins at no charge which reduced the break even to 34% for the ½ oz. silver US-Australian WWII coins 32% on the ¼ oz. gold Devils Brigade coins.

In addition, as Mr. **** has been advised multiple times, the 6/30/13 valuation provided by GoldStar reflects an average wholesale price as determined by GoldStar and that Goldline's bid prices often differ from these prices. Indeed, Goldline's bid/buyback value on 6/30/13 was more than $3,000 higher than GoldStar's valuation.

Mr. **** was advised verbally and in writing: (1) the quantity and products being purchased, (2) the per unit selling price of the products purchased, (3) the per unit buy-back price as of the date of purchase, and (4) percentage the products buy-back price must increase to break even. This information mirrors the information that Mr. **** was provided and agreed to during the tape recorded confirmation of his purchase.

Mr. **** states that Goldline unfairly marks up their coins to increase their profits. This is untrue. Goldline's mark-ups are consistent with, and often lower than, prices charged by other competitors. More significantly, California law is clear that retailers may charge mark-ups far in excess of Goldline's 34% mark-up. See, e.g., Wayne v. Staples, Inc., 135 Cal.App.3d **** XXX (XXXX) (holding a 100% mark-up 'is wholly within the range of commonly accepted notions of fair profitability. Cases of price unconscionability generally involve much greater price-value disparities.")

Although we regret that Mr. **** is unhappy with this purchase, Mr. **** received full disclosure regarding the pricing of his coins and is not eligible to cancel his purchase for a full refund.

If we can provide you with additional information to the BBB, please do not hesitate to contact me.

Sincerely,
GOLDLINE INTERNATIONAL, LLC
**** *******
Director of Client Relations
********@goldline.com
Tel (XXX) XXX-XXXX
Fax (XXX) XXX-XXXX

12/30/2013Problems with Product / Service

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BBB Business Reviews are provided solely to assist you in exercising your own best judgment. Information in this BBB Business Review is believed reliable but not guaranteed as to accuracy.

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