SUBJECT: BEWARE Steve Verkman, Keith Vari, Leland�s, Clean Sweep & Paragon auctions

jayshum · #1 02-05-2025, 06:43 PM

Quote:

Originally Posted by bigfanNY

I found out a couple more facts about this as Joe is a friend of a friend. Joe has not cashed any advance checks, but already got a bill saying he owed 16% interest on the advance until it is paid off. Joe's favorite player was Rusty Staub but his collection is much wider than that. All Joe wants is to get his items back. No checks have been cashed and if Lelands has any real costs he is willing to make them whole. But as of today Lelands has refused. I only met Josh a few times over a few decades but I cannot see him agreeing a customer should be treated like this.

Is it standard practice to charge interest on an advance from an auction house?

Aquarian Sports Cards · #2 02-05-2025, 06:53 PM

Quote:

Originally Posted by jayshum

Is it standard practice to charge interest on an advance from an auction house?

I hadn't realized it when I started out, but I have heard of it being done by a number of auctions, though I certainly don't know if it's a universal practice. We aren't funded like the big boys so we don't do a ton of advances but we haven't charged interest in those cases where we've done them.

It would seem to incentivize NOT bringing the collection to auction in a timely fashion, especially if a time frame isn't outlined in the contract.

tiger8mush · #3 02-05-2025, 07:48 PM

.

jayshum · #4 02-05-2025, 08:00 PM

Quote:

Originally Posted by Aquarian Sports Cards

I hadn't realized it when I started out, but I have heard of it being done by a number of auctions, though I certainly don't know if it's a universal practice. We aren't funded like the big boys so we don't do a ton of advances but we haven't charged interest in those cases where we've done them.

It would seem to incentivize NOT bringing the collection to auction in a timely fashion, especially if a time frame isn't outlined in the contract.

I thought the same thing about possibly slowing down the items being auctioned if there's interest being charged. Also, there's nothing in the contract that was posted to indicate interest on the advance. In fact, it says no additional fees so interest really doesn't make sense.

egri · #5 02-05-2025, 08:03 PM

Quote:

Originally Posted by jayshum

I thought the same thing about possibly slowing down the items being auctioned if there's interest being charged. Also, there's nothing in the contract that was posted to indicate interest on the advance. In fact, it says no additional fees so interest really doesn't make sense.

That's why I was hoping there was more to the contract than what has been posted, because what has been posted so far is a real mess.

rand1com · #6 02-05-2025, 07:21 PM

Quote:

Originally Posted by jayshum

Is it standard practice to charge interest on an advance from an auction house?

Advances are popular for big ticket items as they may help bring in the consignment with all other things being equal.

I have gotten them in the past from multiple auction houses and have never paid any interest.

The advance is simply deducted from the consignor's final earnings at auction end.

Obviously, if the proceeds do not cover the advance, the uncovered advance must be returned to the auction house which rarely happens.

egri · #7 02-05-2025, 07:43 PM

Is 16% a reasonable rate of interest for an advance? I could probably go to the bank and get a personal loan with a lower rate.

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