[benjulmag]

As has been noted in the thread about Blowout's latest revelation, what Blowout has brought to light represents only the tip of the iceberg in regard to the number of altered slabbed cards in the marketplace. My personal opinion is that it is the rule, not the exception, that vintage high-grade cards that have significant market value and which do not have documented provenance to a period when there was no economic incentive to alter, are altered.

This got me to thinking about the recourse defrauded collectors would have against PSA, and I looked up the latest version of the PSA Guarantee. One provision in particular stood out, which I don't recall having previously seen.

In each case of a Guarantee claim, there is a per-card cap of $250,000 and a lifetime cap of $500,000 per person (together, the “Maximum Amount”). PSA will not pay Guarantee claims in excess of the Maximum Amount.


As I read this, PSA in one fell swoop is trying to wipe out probably the great majority of its contingent liabilities, which, if successful, would probably save it from economic collapse should someday all these alterations come to light and PSA is bombarded with Guarantee claims it cannot afford to pay. There are many cards in the six-figure range. And there have to be a significant number of collectors whose card holdings are tied up in cards that are the prime alteration suspects where a $500K lifetime cap would not come close to making these collectors whole.

In past discussions about the PSA Guarantee I and others made the point of saying someday it could pose an existential threat to the company. Based upon this latest version, and assuming it is enforceable against collectors whose claims under the Guarantee involve cards acquired before this provision was added, PSA quietly in a brilliant legal move might have prevented doomsday from ever occurring.