Elderly people, particularly those in isolated rural areas, are living in constant fear of attack and robbery because of a phenomenal growth in the number of totally unregulated cash for gold schemes, according to Kilkenny Fine Gael senator John Paul Phelan.
Senator Phelan said that following the adverts on television and in papers, encouraging people to send off their old, broken, or scrap gold in the post for cash, there has also been a phenomenal growth in the number of outlets popping up on high streets and in shopping centres throughout the country, offering cash for old gold, phones, and other items.
“I’ve been in touch with the National Consumer Agency and they have told me that there is no regulatory body overseeing this growing industry. We have regulators for broadband and the telecom sector, but no legislation in this area to protect consumers or vulnerable people who fear that growth in this trade will leave them open to robbery and attack.
“I’ve spoken to several elderly constituents who fear that the allure of cash for jewellery will leave them even more vulnerable and more exposed to attack. One woman doesn’t know whether she is better off leaving her wedding, engagement, and eternity rings at home on the odd night she does go out, because she’s afraid that wearing them might make her a target for attack. We can’t allow this to continue.
“The pawn industry, which grew rapidly in the last recession, was regulated and anyone engaging in its service was required to provide photographic ID and at least two utility bills which proved their address. Also anyone entering a pawn shop knew they were being captured on CCTV.
“We need strict regulation of the cash for gold industry and an interim solution, I feel, would be that anyone trading gold for cash should be required to go to their local Garda station and sign a declaration in front of a peace commissioner that they are the legitimate owner of the property being traded.”
Senator Phelan contacted a number of these companies, posing as a customer, and asked about proof of ownership of the gold being offered. On each occasion, he said that he was told that proof of ownership is not required.
“This left me flabbergasted. With the downturn in our economy we have seen a spike in opportunistic crime. We must close this loophole for the sake of our communities. We can no longer tolerate a situation where people who have worked hard all their lives and have precious jewellery - much of it of sentimental rather than cash value - are living in constant fear,” Senator Phelan concluded.
Senator Phelan is currently drafting a Private Member’s Bill on the issue and hopes to have it before the Seanad in the coming weeks.
