Heads up about FedEx policy

[EZ_E]

 

 

FedEx policy leaves collector fuming

A Spring Hill man files suit over the company's refusal to reimburse a $2,900 loss in collectible coins.

By JENNIFER LIBERTO, Times Staff Writer

© St. Petersburg Times

published September 14, 2003

 

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SPRING HILL - For three years, Jack Greifenberger has purchased shiny silver, platinum and gold coins. They arrive promptly at his home a day or two after he purchases them from shopping networks, wrapped in packages bearing the purple and orange FedEx logo.

 

But the Spring Hill collector recently learned that companies enjoy some shipping privileges not extended to consumers.

 

Greifenberger shipped $2,900 worth of gold and platinum coins about 100 miles south to Sarasota via FedEx, which lost his coins and has since refused to reimburse him for their value.

 

The Memphis, Tenn., company has produced for Greifenberger a long list of "prohibited items." No. 1 on the list: collectible coins. Under its "terms and conditions," FedEx refuses to insure prohibited items.

 

But the fine print does not apply to everyone, FedEx spokesman Howard Clabo admitted.

 

Companies such as Shop at Home TV, which sold Greifenberger his coins, as well as several large coin auctioneers and dealers, work out special arrangements with FedEx to ship their collectible coins, fully insured.

 

"We certainly do negotiate special deals with separate customers," said Clabo, who declined to talk specifically about Greifenberger's case.

 

The shipping industry favors large collectors, dealers and companies because they do more business with express mail services than average coin collectors, said Steve Bobbitt, spokesman for the American Numismatic Association in Colorado Springs, Colo.

 

"Things can get lost, but normally FedEx is very secure and right there," Bobbitt said.

 

Greifenberger has decided to fight.

 

A day after he received FedEx's last correspondence, denying liability for the lost coins, Greifenberger filed a small claims lawsuit in Hernando County Court to recoup the value of the coins.

 

"I think it's a double standard," said Greifenberger, who had no idea his coins were not supposed to be accepted or insured.

 

Greifenberger's troubles began when he took the four platinum and four gold coins to the FedEx office in Brooksville in March to have them shipped to the Numismatic Guaranty Corporation of America, a Sarasota company that judges and grades the condition of coins, potentially adding value to a collection.

 

Greifenberger said he told the attendant exactly what was inside the package, so it could be insured.

 

"Why did he take my money for insurance if he couldn't insure it?" asked Greifenberger, who started collecting coins after the stock market ate through his other investments.

 

FedEx created the rule prohibiting the shipment of collectible coins because the company considered the act of putting a price to a collectible item's worth too subjective.

 

"It's too difficult for us to figure out the value of what's being shipped," Clabo said. "This is not going to be insured; we're not going to be held liable for this."

 

But FedEx is a frequent shipper of collectible coins to the twice annual American Numismatic Association conventions, said Bobbitt.

 

"FedEx has agreements they work out with the dealers, but those arrangements are made in advance," he said.

 

Often, smaller coin collectors ship through local coin dealers who have made special arrangements with FedEx, Bobbitt said. Or if the coins are of extremely high value, they will be shipped through a high-end service such as Brink's.

 

But most small collectors cannot afford to ship via an armored truck. And UPS, like FedEx, prohibits consumers from shipping collectible coins.

 

So, unless a collector has a coin dealer with a special shipping deal nearby, the U.S. Postal Service is the only option.

 

"Had I known they don't insure coins, I would have gone to the post office," Greifenberger said. "If these guys are making special deals, the public should know. How am I supposed to know what companies can ship but I can't?"

 

 

[keithdagen]

This isn't a new policy on behalf of FedEx, but has been in place for many years. USPS isn't always good about paying the claims, but they will insure coins. FedEx has always said up front that they won't insure coins for shipment.

[MAULEMALL]

This isn't a new policy on behalf of FedEx, but has been in place for many years. USPS isn't always good about paying the claims, but they will insure coins. FedEx has always said up front that they won't insure coins for shipment.

Although I have recieved a few boxes from NGC by FEDEX.

[TomB]

What do you want to bet that the counter clerk that took the guy's package now has some "shiny silver, platinum and gold coins" to show for his day's work?

 

The FedEx policy is not new at all, as Keith has already stated. I use Registered Mail for anything valuable and am willing to wait the few extra days it takes to get shipped and pay the few extra dollars to ship it. There has never been a problem for me shipping this way and it is the only way I will ship many coins.

[jeffnpcb-migration]

I don't blame any company for not insuring a private citizens lose. FedEx and UPS knows who their clients are in the business world and what they ship. How do they know that the package sent wasn't a box of rocks? Shipping by USPS Registered or other means by them, I have to state what is in the flat or box for them to cover it and they generally acknowledge that fact.

Blaming someone else, or a business for your unsound decisions[ plan ignorance] is becoming more and more a national habit! Think first before you react and you can save yourself allot of grief!

[airplanenut]

If you want to use fed-ex, you can insure at U-PIC.

 

I'm just started a low volume account... I paid a $25 deposit, and then $.85/$100 for USPS shipments ($.60 if I use delivery confirmation), and $.30/$100 for Airborne Express (I dont ship FedEx, but Airborne is the same way about insuring coins- FedEx happens to also be $.30/$100). Since they have a $100 deductable that isn't covered, I insure for $100 over the coins' value.

 

I submit a monthly report of packages, and then pay the premium, which is cheaper than insuring with the carrier, and no trips to the PO.

 

Also, the policy states they don't cover coins- if you sign up, they will write a release so your coins are covered.

 

Jeremy

[TomB]

If you lose a package they won't pay you what you insure the coin for, they will pay you the coin's market value. So, if you insure the coin for $100 more than it's worth, you will not get the extra $100 worth of insurance.

[EZ_E]

Registered mail is insured, of course, but the only way that one can collect is if you have the original receipts for the sent objects (whether coins or widgets). My girlfriend, who works behind the counter at the post office told me this.

 

Personally, I feel that if you pay the premium to insure something and it is lost, then it should be reimbursed. I don't care if it was just a box of rocks. Remember, we've been talking alot about guarantees lately on other threads. What good is a guarantee/insurance if it doesn't pay out?

[keithdagen]

Registered mail is insured, of course, but the only way that one can collect is if you have the original receipts for the sent objects (whether coins or widgets). My girlfriend, who works behind the counter at the post office told me this.

 

I have had several claims to the PO where I did not have my original receipts for the material. In those cases, I wrote a letter attaching the E-Bay sales record to show what was sold, plus a copy of the PCGS Price Guide for the coin in question, to show that my claim was for a reasonable value. All claims were approved.