Update - So, what should the auction house do to make amends to their consignor?

[MarkFeld]

Here are the relevant particulars, and before anyone asks, the name of the auction house will remain a mystery

 

Consignor is due approximately $35,000 from the sale of coins in a public auction.

 

Before settlement date, consignor buys approximately $32,000 worth of coins in a subsequent auction conducted by the same auction house. Payment is made in full and on time, and check clears buyer's bank.

 

BUT, when the auction house sends out the settlement check, for whatever reason, they mistakenly think they haven't received their $32,000. And, without even contacting the client, they deduct that amount from the consignment proceeds and pay approximately $3000 instead of $35,000. As an added "bonus", they also deduct roughly $200 for interest on the allegedly overdue $32,000 account receivable, which, as has been noted, wasn't really overdue at all and had been paid on time.

 

So, the consignor is due roughly $32,000 which is now late, due to the auction company's accounting error.

 

If you were running the auction house, how would you address this situation?

 

 

[BankNote1]

The auction house owes the man his $32,000 + $200. Unless I misunderstood the question. If I didn't, never mind!

[gmarguli]

I'd overnight the consignor a check for $32,000 and and apology letter offering good terms on the next consignment and to call me personally when ready with that consignment.

[MunkyMan95]

If I was running the auction house and had a spine, I would credit him his $32.200 and maybe an extra $1,000 for our screw up.

[braddick]

I would send the consigner a free branded coffee mug and call it a day.

 

Heritage does still give away their coffee mugs, don't they?

[ldhair]

One of the main people from the auction house should pick up the phone and call the guy. A customer that does $30,000 deals should be important.

Payment should also go out overnight. A future discount of some sort would be a nice touch as well. This is the type of deal that any company should fix really fast.

 

[James_OldeTowne]

The auction house owes the man his $32,000 + $200. Unless I misunderstood the question. If I didn't, never mind!

That, plus he should get back an extra $200 interest.

[cpm9ball]

What everyone else said including a special discount on a future consignment, but..................................lose the coffee mug.

 

Chris

[Oldtrader3]

Forget the coffee mug, especially if it is breakable. Send the person the balance due of $32,000+$200 interest+offer to take half off of their next consignment fees.

[rbrown4]

I agree with the others, immediately initiate payment of the $32,000.00 plus a refund of the $200.00 interest. Any additional offering of good faith as a result of this situation would be a positive move on the Auction House's part I believe as well.

 

Rey

[bsshog40]

I agree with the others, immediately initiate payment of the $32,000.00 plus a refund of the $200.00 interest. Any additional offering of good faith as a result of this situation would be a positive move on the Auction House's part I believe as well.

 

Rey

 

Me too!!

[MikeInFL]

It was the auction house's mistake, and they need to make it right by, at a minimum, crediting the payment and removing the incorrectly charged interest (a total of $32.2k).

 

The only question on my mind is if this is enough, or if the auction house should sweeten the pot to make up for the mistake -- I would likely throw something else in if I were making the decision....Mike

[WoodenJefferson]

I do believe the accountant or the firm that does the accounting should be held responsible for this type of error that could very well effect future dealings with this customer. (Reprimand, letter of apology, lashings…something)

 

I am in line with the others with cutting a check/plus interest (not only the $200 charged for the error on the delinquent payment, but any interest on the $32,000 that has since accrued from day one in this fiasco)

 

Make it right and do it quick!

[Doogy]

 

 

Send out a shirt to the consignor saying:

 

"I sold $35k worth of coins, and all I got was this lousy T-shirt!"

 

 

[Revenant]

$32K and the insult of being charged INTEREST on my non-overdue bill, would be sufficient reason for me to sue, and I don't take that position everyday.

 

[MarkFeld]

$32K and the insult of being charged INTEREST on my non-overdue bill, would be sufficient reason for me to sue, and I don't take that position everyday.

Sue for what, besides interest you would have earned on the money?

[DirtyGoldMan]

I'd overnight the consignor a check for $32,000 and and apology letter offering good terms on the next consignment and to call me personally when ready with that consignment.

 

I think this is the best answer given.

[PerryHall]

I'd overnight the consignor a check for $32,000 and and apology letter offering good terms on the next consignment and to call me personally when ready with that consignment.

 

I think this is the best answer given.

 

What about the $200 charged for interest?

[michael]

pay the consigner with interest and refund the interest charged

 

and also the auction company should have rohan send the consigner a nice letter of apology and outline new steps taken in their accounting system/oversight so this does not happen again

 

also send the consigner a nice 200 dollar gift certificate on a visa debit card to go out to dinner with the wife,friend,relative

[coinman1794]

$32K and the insult of being charged INTEREST on my non-overdue bill, would be sufficient reason for me to sue, and I don't take that position everyday.

Sue for what, besides interest you would have earned on the money?

 

I would only sue if they damaged my credit.

[Revenant]

$32K and the insult of being charged INTEREST on my non-overdue bill, would be sufficient reason for me to sue, and I don't take that position everyday.

Sue for what, besides interest you would have earned on the money?

 

I should have been more clear; I would sue, if they didn't immediately give me the $32,200 back without excessive grumbling and apologized profusely.

[thehumantorch]

I'd overnight the consignor a check for $32,000 and and apology letter offering good terms on the next consignment and to call me personally when ready with that consignment.

 

I think this is the best answer given.

 

I also like this reply. Mistakes happen. Returning the money overnight is essential. $32,000 not returned in a timely manner could cause problems for the consignee. Of course I would also expect the $200 interest returned. I would also expect an apology, written or preferable by phone.

[agentjim007]

I am in line with the others with cutting a check/plus interest (not only the $200 charged for the error on the delinquent payment, but any interest on the $32,000 that has since accrued from day one in this fiasco)

 

I agree this makes him whole but they should throw in more for his trouble. Since a $35K consignment should already get you 0% seller fee he should get a buyer fee credit on his next purchase.

[MarkFeld]

Update - Yesterday, the consignor sent an email request to a person he knows at the auction house as follows:

 

".....Please see that my $35,711.55 net proceeds that I should have received, plus whatever interest you deem to be fair for the late payment from ------ to me (as well as the easily avoidable aggravation that I have been caused) is wired to my account below...."

 

A wire was received today in the exact amount above.

[jtryka]

So they deemed $0 interest to be fair? Does the $35,711.55 include the total net (i.e. the $200 interest would not factor in?)

[MarkFeld]

So they deemed $0 interest to be fair? Does the $35,711.55 include the total net (i.e. the $200 interest would not factor in?)

The amount of the wire was the correct/exact amount that the consignor was originally owed. Interest for the one day delay would have been less than $10 and the auction representative has (edited) assured me that the company will more than make up for that in the future. I believe him and will do my best to see to that.

[Revenant]

That amount of money at 1% interest would earn $0.98 per day. Since 1% is really unfair, if you look at inflation and then ~5% then it would earn $4.89 per day. Apparently it's okay for you to be charged interest but not the other way around. Are you sure you don't want to tell us who did this? I'd love to add them to the black list.

[MarkFeld]

That amount of money at 1% interest would earn $0.98 per day. Since 1% is really unfair, if you look at inflation and then ~5% then it would earn $4.89 per day. Apparently it's okay for you to be charged interest but not the other way around. Are you sure you don't want to tell us who did this? I'd love to add them to the black list.

I guess the consignor should have asked how the auction house arrived at $200 and change in interest.

 

[ldhair]

OK, I'm lost. They owed him 35 but paid him 3.

Now they pay him 35. Where did the 3 go?

I know I'm slow.

[WoodenJefferson]

~consignor buys approximately $32,000 worth of coins in a subsequent auction~

 

In addition too what I previously stated, give the buyer all the "juice" back on this $32K!