Auction house complaints: Ruth to the Rescue responds

Going, going, gone?

Connie Hall of Clinton Township inherited a treasure trove of antiques from her late father who owned an antique store in Detroit. She's been worried about thousands of dollars raised in a series of auctions. She says the last few months have been frustrating.

"I really couldn't sleep at night thinking about my poor father rolling over in his grave," said Hall.

In late 2014, Hall says she entered into an agreement with Midwest Auction Galleries to sell several beautiful antiques. Midwest was formerly based in Oxford, but has since moved to Auburn Hills. Hall says the company put out a beautiful catalogue featuring her pieces and several items sold in December and January. She says she was supposed to receive payment within 30-45 days. She waited, but the money didn't come.

"They would not answer my calls... they would not return any questions I had that I sent via email," said Hall.

Ruth to the Rescue volunteers help

That's when Ruth to the Rescue volunteer Donna Schultz starting working with Hall. Ruth to the Rescue has a staff of almost two dozen volunteer investigators who answer hundreds of consumer complaints each month. Hall's request for help ended up in Schultz's hands.

"I started to try to track down the owner of the auction company by phone call, by email," Schultz said.

As she started working with Hall, the Ruth to the Rescue unit learned at least three other customers were having similar problems. Each shared stories of delayed payments and repeated excuses. Some of them were corresponding online, and Ruth to the Rescue started advocating for all of them.

"They were very evasive, and it just sort of made you angry," said Hall as she echoed the complaints lodged by all four customers against the auction house.

A successful outcome after a glitch

Finally, the Ruth to the Rescue team tracked down Jim Amato, the owner of Midwest Auction Galleries by phone.

"He knew, and word had gotten around that Ruth to the Rescue was looking for him," said Schultz.

Amato promised to send payments, and two customers received checks. Sadly, they bounced.

"I just couldn't believe any man would write a check and not have any money in the bank," said Hall.

Determined to collect her money, Hall called the credit union where the check originated to see if anything could be done. Hall says an employee told her if she came right away, there was now enough money in the account to cover her checks.

"I was there within an hour and fifteen minutes," Hall said. "And I went in and cashed my three checks and the three checks totaled well over $16,000."

Hall says she complained to police and the Attorney General, but believes it was Ruth to the Rescue that saved the day.

"I would just thank them very much for being there and the fact that the didn't stop investigating," Hall said.

For the Ruth to the Rescue volunteers, this is the type of case they enjoy tackling and seeing some results.

"I was thrilled. I was absolutely thrilled for this lady who had fought so hard to receive that money. It made all the work, everything, totally worth it," Schultz.

At this time, two of the other customers have also been paid in full. The fourth customer is still waiting, although a partial payment is reportedly in the mail.

Amato declined an offer to do an in-depth on-camera interview. He has told Ruth to the Rescue he's been in business for years, and this is the first time something like this happened.

Shopping for auction gallery, consignment shops

Whenever you are trying to sell precious belongings, you need to do some homework before deciding which company will meet your needs.

Working with the Better Business Bureau, Ruth to the Rescue has come up with these guidelines:

1) The first rule: Shop around! As always, you should speak with a few companies to see what kind of services they offer, what share of the proceeds they will keep, and how quickly you will get paid?

2) Other questions to ask: How long have they been in business? Do they have references you can call? Do they have any special areas of expertise?

3) If your items will be for sale in a store, visit the location. If the store is dependent on walk-in traffic, is it in a good location? Do the prices on other items seem reasonable and accurate to you?

4) Also, ask about what kind of advertising they do, especially of your items will be sold at auction.

5) Be aware that some stores will not accept items that are not in season of those that they expect to sell for less than a specific amount.

6) Auction drop-off stores will take a digital photo of your item, write the sales description and pitch, post the auction, and handle shipping to the winning bidder. Ask if you can view the ad before it's finalized. Some auction drop-off stores will provide an e-mail link to permit you to track the progress of the bidding.

7) The business should willingly provide a bill of sale or other record after the sale. If your item doesn't sell, know what you need to do and by what date in order to regain possession of your goods.

8) Finally, once you have selected a consignment business, GET A WRITTEN CONTRACT! Any promises you don't have in writing will be very difficult, if not impossible, to enforce. The contract should clearly spell out how the proceeds from a sale will be divided - i.e., will you be paid a flat fee or a percentage (generally from 30-60%)? It should also specify how long your item will remain "on the shelf"; and detail how and when the business will pay you your share of any sale.


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