PCGS Guarantee
jgrech
Posts: 47
Does anyone have a link to a full description of the PCGS Guarantee of Grade and Authenticity. I see it mentioned several places on the website (Customer Bill of Rights, About PCGS, and List of Services pages), but could not find any explanation. In fact, the submission form, which is the only real contract between submitters and PCGS, states--"PCGS disclaims any warranties, express or implied with respect to the grade assigned by PCGS to any coin, except pursuant to PCGS's guarantee resubmission, re-verification or regrade service as in effect from time to time."
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PCGS GRADING TERMS AND PROCEDURES
1. PCGS will endeavor to grade coins within the time frame, if any, offered as part of a PCGS grading service. However, PCGS will have no liability whatsoever to Customer for incidental or consequential damages due to PCGS's failure to grade any coin within any time frame.
2. PCGS will not grade coins which bear evidence of harsh cleaning, artificial toning, damaged surfaces, excessive major marks, planchet flaws, altered surfaces, PVC damage, or similar impairments. Customer agrees that in the event PCGS rejects any coin for grading in accordance with PCGS's current grading standards and procedures, PCGS shall not refund the fee paid by Customer because the determination to reject a coin requires a review by PCGS's grading experts.
3. Grading involves individual judgments that are subjective and require the exercise of professional opinion, which can change from time to time. Therefore, PCGS disclaims any warranties, express or implied with respect to the grade assigned by PCGS to any coin, except pursuant to PCGS's guarantee resubmission, re-verification or regrade service as in effect from time to time.
4. If PCGS determines that Customer's coin was lost or damaged while in PCGS's possession, Customer will be compensated in accordance with PCGS's standard procedures and not necessarily based upon the insured value the customer assigned to the coin. Such compensation shall be Customer's exclusive remedy for any loss or damage, and PCGS disclaims any liability for incidental or consequential damages arising therefrom.
5. Customer must inspect all coins immediately upon receipt and PCGS disclaims any liability for damage or discrepancies (such as errors pertaining to the description of the coin) unless reported to PCGS within five (5) days of Customer's receipt of the coin(s). Customer agrees to return any incorrectly described coin to PCGS upon request for correction and agress to indemnify and hold PCGS harmless from any and all losses and / or claims caused by the circulation or sale of incorrectly described coin.
6.PCGS shall have no liability whatsoever to the customer for any personal injury or damage to any coin, or otherwise, resulting from the breaking open of a PCGS coin holder, or for any damage to any coin that PCGS can reasonably demonstrate occured while not in the custody or control of PCGS.
7. Except as expressly set forth herein, PCGS disclaims any and all warranties, express or implied, regarding PCGS goods and services including the warranties of merchantability and fitness for a particular purpose.
8. Exclusive jurisdiction and venue for any dispute arising from Customer's submission of coins to PCGS shall be in the Superior Court, Orange County, California, and Customer agrees to waive any right to a trial by jury in any such action, and further agrees that the prevailing party in any such action shall be entitled to an award of its attorney's fees and costs.
"As an owner of a PCGS-graded coin, the customer will have the benefit of the PCGS Guarantee of Grade & Authenticity; Authorized Dealers will accept the grades assigned to the coins by PCGS."
Further down it says:
"The customer can call PCGS at (800) 447-8848 to report any instance in which an authorized dealer, in offering to buy a PCGS coin from the customer, attempts to justify a lower-than-market purchase or bid price for the PCGS graded coin on the basis of allegedly improper grading by PCGS..."
The bold is my touch. I assume the auction house is an authorized PCGS dealer, since they submitted the coins for him. End of story. They don't even play by their own rules
Guarantee of grade and authenticity
The Guarantee of grade and authenticity is fundamental toi PCGS's concept of third party grading. The cash back policyensures the accuracy of the grade assigned to any PCGS coin as long as it remains in its tamper evident holder. If a coin is believed to have been improperly graded- and a discrepis found during PCGS's Guarantee Resubmission Service - the guarantee entitles the coins's owner to options designed for his or her protection.
PCGS guarantees tha all coins submitted to it shall be graded in accordance with PCGS grading standards and under the procedures of PCGS.
In the event that the purchaser of a PCGS graded coin believes that tthe coin has been overgraded with respect to such standards and procedures, he may submit such coins to PCGS for re-grading under a procedure which insures that the graders are unaware of the grade originally assigned.
If the grade determined under such re-grading procedure os lower than that originally assigned to the coin, PCGS shall pay the differance between the highest then current bid by a PCGS dealer for the coin in question at the newly established grade and the highest bid for the coin at the grade originally assigned. PCGS will also refund the re-grading fee and postage and insurance cost incurred by the coin owner in sending the coin to PCGS.
This guarantee shall not apply to any coin as to which an obvious clerical error has been made with respect to the description of the coin.
END OF GUARANTEE
Misgrading is covered but if you PCGS coin turns out to be fake, nothing in this guarnatee obligates them to do anything about it. So far they always have made it good but there is no requirement that they do so.
Might it be implicit in the title, "Guarantee of Grade and Authenticity?
How about in the PCGS statement, which I cannot currently find, that they only encapsulate "problem free coins?"
When they regrade, IF they find that the coin is overgraded, IN THEIR SOLE OPINION, they will pay you back the difference in CURRENT market value between the slabbed grade and the new grade that they NOW say the coin is in.
Grading is subjective and is opinion only. If you buy a coin, make sure YOU like the coin for the price you paid. If your mind is only on what you can sell the coin for, then you may get burned no matter what the PCGS guarantee says. Steve
My Complete PROOF Lincoln Cent with Major Varieties(1909-2015)Set Registry
It's implied in the word "coin"! Authentication is part of coin grading. Otherwise it'd be called slug grading.
Fortunately PCGS has always stood behind their slabs though and paid compensation.
I have heard of cases where ACG has used that technique of handling counterfeits in their slabs. I can't swear that it is true though, I don't have any first hand knowledge.
Coin Collecting used to be so simple!