Beware of Beckett!

[BobC]

Originally Posted by Rich Klein

19 months is a long time but in Beckett's defense on charging cards earlier -- let me remind you of the Marx Card debacle earlier this year with PSA

https://www.sportscollectorsdaily.co...or-bankruptcy/

I get the card should be charged closer to when the cards are, you know, graded. But the TPG's have to protect themselves as well and the Marx card story was a heck of a wake up call

Rich

Wow! Wasn't aware of this till just now reading that link. As others have noted, Marx was in a sort of fiduciary capacity in that they collected grading fees on behalf of customers, which was never their money. They were also paid their service fees, up front in most cases apparently, which should have been the only money they were using to cover their ongoing costs. So, I would hope that bankruptcy be damned, and that the Marx owner(s) can be held personally liable to some extent for those customer's grading fees they should have never spent.

Probably the way the customer contracts/agreements are worded will be vague enough, or otherwise worded, to get them out of any normal personal liability for the bankrupt company's debts though. This is assuming of course that the company was set up in such a way that it afforded personal liability protection to the owner(s) in the first place.

Regardless, glad to hear that PSA stepped up and will not charge the customers the grading fees they had already paid to Marx. I wonder if the old, publicly held, PSA would have been so generous? A few very well off, private owners getting together to make such an image positive decision is one thing. Getting thousands and thousands of shareholders to think that is the right thing to do is quite another though.