PWCC Cash Flow

PADIdiver

I hope this post is ok but if not please let me know to remove. I started wondering about the refund process for people who are returning cards that were "conserved" or "altered". I'm not getting into the definitions here.

If PWCC is issuing refunds for cards I'm assuming they will eventually run out of money as I can't imagine they have that much cash on hand to issue refunds for all returned cards. Therefore it would be in the best interest for collectors to get their refunds ASAP before the money dries up.

Alternatively, could PWCC send these cards back to PSA under the policy that if a card was overgraded PSA will pay the difference in value? And therefore PWCC will let PSA pick up the tab on these refunds?

EDIT: Just read an article on Seeking Alpha where this exact thing has been mentioned as a large liability for PSA's stock. Does this mean PWCC will get away from having to do any refunds? I'm assuming this will likely end up in a lawsuit because if I'm PSA I'd argue that PWCC acted in bad faith.

https://seekingalpha.com/article/4268721-collectors-universe-scandal-waiting-exposed?page=4

Desert_Ice_Sports

If PWCC and PSA get into a protracted legal battle, it would create a very interesting dynamic in the hobby... I hope they're both smart enough not to let that happen.

JHS5120

I’d imagine PWCC has insurance and this whole fiasco might be covered under the policy. I’m not particularly worried.

PADIdiver

@JHS5120 said:
I’d imagine PWCC has insurance and this whole fiasco might be covered under the policy. I’m not particularly worried.

Normally insurance would deny coverage if it can be proved there was fraud. I think the lawyers are going to make a lot of money on this arguing both sides!

PROMETHIUS88

Purely a guess and I have taken heat elsewhere for this.
PSA is trying to get as many people as possible to return the cards to PWCC for refunds to limit their exposure. I get it and it would be a smart move financially. Then, if/when PWCC tries to get refunded by PSA, their claim would be denied as they attempted to defraud. PSA will have to take some hits, no getting around it.
I just hope that after all the dust settles, there are some positive changes that are good for the hobby.

AFLfan

Hey Guys...

I'm normally one for letting a conversation go with some regulation, but as no one here truly knows the facts on anything so far posted, I don't see this as being a beneficial thread. As such I am going to go ahead and lock this down in an effort to limit speculation that might be taken as fact somewhere down the line.