Card Graders vs. Credit Rating Agencies

[glchen]

I don't think this is the best analogy. The major TPG's back up their grades. That is, if they make an error, they will compensate the owner of the card the difference between the price that the owner purchased the card for and the market value for the card at the revised grade. Credit rating agencies obviously don't offer any kind of compensation if the rating that they provided proved incorrect.

[Peter_Spaeth]

Originally Posted by glchen

I don't think this is the best analogy. The major TPG's back up their grades. That is, if they make an error, they will compensate the owner of the card the difference between the price that the owner purchased the card for and the market value for the card at the revised grade. Credit rating agencies obviously don't offer any kind of compensation if the rating that they provided proved incorrect.

Yeah, IF they acknowledge the error. Big IF. "The graders stand behind the grade."

Just look at David Hall's defense of the Wagner.

[bnorth]

Originally Posted by glchen

I don't think this is the best analogy. The major TPG's back up their grades. That is, if they make an error, they will compensate the owner of the card the difference between the price that the owner purchased the card for and the market value for the card at the revised grade. Credit rating agencies obviously don't offer any kind of compensation if the rating that they provided proved incorrect.

I have never read PSA's guarantee but i have read SGC's and it is a joke at best. Everthing is at their discretion.

[glchen]

Originally Posted by bnorth

I have never read PSA's guarantee but i have read SGC's and it is a joke at best. Everthing is at their discretion.

I've used SGC's guarantee before, and let me just say that they were extremely fair. If someone has had a bad experience taking SGC up on this, it would be news to me.

[bnorth]

Originally Posted by glchen

I've used SGC's guarantee before, and let me just say that they were extremely fair. If someone has had a bad experience taking SGC up on this, it would be news to me.

That is good to know Gary. I just found the way it is worded very one sided.
Here is a copy of it.

SGC Guarantees that all cards submitted shall be graded by SGC grading experts in accordance with SGC grading procedures. In the event the owner of an SGC card believes that the card has been overgraded with respect to such procedures, the owner may resubmit the card to SGC for a review of the assigned grade.

If the grade determined under such review is lower than that originally assigned to the card, SGC shall, at SGC's discretion, either replace the card or pay the difference between the current fair market value of the card at the newly established grade and the current fair market value of the grade originally assigned to such card, in the form of either cash or grading credit. Due to the volatile nature of the sportscard market and Internet auctions/sales, the selling prices in these auctions do not necessarily represent the current fair market value of any particular sportscard. SGC will determine the current fair market value of a card which is assigned a lower grade on review, based upon what SGC believes to be reliable current market information. Clerical errors with respect to the description or grade of the card(s) which would be obvious upon inspection shall not be subject to the SGC guarantee stated herein.