Private Party Second-Guessing

[diamondjoe1]

Hi all,

First post here. I have recently purchased a .7 carat round diamond in a solitare palladium setting. I found the ring on a local buy/sell/trade website and met the guy in a public place (per my request). It was a very good price in my opinion and he gave me the credit card style info report with a number that is also inscribed on the stone (I checked it and it DOES match).
I talked to my sister about this (she has been helping me through the process) and she said that maybe the payments have not been completed and he gave me a ring that could possibly be repossessed.

Now I'm scared about this whole thing. Is it really possible that the guy I purchased it from (he has my phone number only) could forward creditors to me and they could repossess it?

I don't want to put a hot diamond on my girlfriends finger!!! Please help me find out what to do or if I'm not really in a pinch.

 

[diamondseeker2006]

The most dangerous aspect is that it sounds like the diamond was not GIA graded, and in that case, you really don't know what you were paying for. So you really don't know if the price was good or not.

If the guy bought the ring on credit, the creditors go after him for money. He is responsible for the debt. It is not like buying a car or house and forfeiting on the payments, I don't think. Or at least I have never heard of such a thing happening in my 8.5 years on this forum.

If I were you, I reset it anyway into white gold or platinum. A lot of jewelers don't even size palladium.

 

[diamondjoe1]

The diamond was graded by another laboratory, but as I learn more about this I see that GIA is really the thing one should look for.

Is it the same thing if he set up some kind of payment plan with the jeweler? What if the ring was the collateral?

 

[diamondseeker2006]

The diamond was graded by another laboratory, but as I learn more about this I see that GIA is really the thing one should look for.

Is it the same thing if he set up some kind of payment plan with the jeweler? What if the ring was the collateral?

Do you know where he got the ring? Perhaps you could get details of their financing? (If a chain, call one in another city!)
There is just no way to know without more information.

It is good when you buy second hand to see the sales receipt to know if it was paid in full. I know hindsight is easy, but for future reference, it is a good idea (and to have GIA grading).

 

[Dancing Fire]

What does the card say "what are the specs"? how much did you paid?..

I don't think you have to worry about the creditor part.

 

[SirGuy]

I've some professional experience with frauds and such of this type, if that's what you believe it to have been. From what you've described, I wouldn't be particularly worried about a creditor coming after you.

What does worry me on your behalf is the grading report. Which lab is named on your paperwork? Some are more reputable and accurate than others, AGS and GIA being the best. If it was not graded by a good lab, then you don't know what you have and then your "good deal" can vanish quickly. Or worse, your purchase can turn into a liability for resale or return.

If it's too good to be true, then it is.

 

[proto]

if the seller doesnt have good title, the purchaser doesnt have good title either.

I would consider there is sufficient notice of a potentially bad title from seller for purchaser to be put on notice

not sure why people arent concerned about this risk.

yes, the debt will go primarily to the seller first, but if the seller has insufficient funds, they will chase assets, and if they have a lien or charge over the diamond, then OP is going to be SOL.

imagine you guy a car from someone who is leasing it, but cant make the rest of the payments. you dont get to keep that car if he doesnt make his payments.

maybe america is different, I dont know.

notwithstanding the above, the main concern is you purchased a non GIA graded stone. It is also not particularly difficult to inscribe a piece of glass or similar. Did you take it to a gemmologist yet or appraiser? I couldnt deal with this type of transaction tbh. too many scam artists etc these days.

 

[rockhoundofficiando]

Hmm credit card style report sounds like IGI, which is not a highly respected grading laboratory. Typically the IGI credit card reports are very basic generalizations about the diamond with the disclaimer that it was graded (usually not so accurately!) in the mounting, it gives very limited information and seems to be more of a marketing tool than anything else. Walmart and various mall stores sell rings with these kind of credit card type "certs". Although am not sure even Walmart sells rings set in palladium, theirs are typically more valuable metal--ie gold.
Whatever the cert says, if it near colorless with sparkle and fire in addition to being a good price, then enjoy. I would not worry about whom you bought it from unless you believe the person you bought it from stole it. It's very doubtful anyone would pursue you if payments were not made on the ring by the original purchaser.

 

[diamondjoe1]

Many thanks, gentlemen. After bringing it to a few jewelers and having it appraised, I feel it was a good purchase, but I see my folly in the original transaction.

As for the other issues, after reading your posts I've made a lot of calls and did some homework and I think I'm OK. I appreciate you all giving me insight.

 

[Texas Leaguer]

if the seller doesnt have good title, the purchaser doesnt have good title either.

I would consider there is sufficient notice of a potentially bad title from seller for purchaser to be put on notice

not sure why people arent concerned about this risk.

yes, the debt will go primarily to the seller first, but if the seller has insufficient funds, they will chase assets, and if they have a lien or charge over the diamond, then OP is going to be SOL.

imagine you guy a car from someone who is leasing it, but cant make the rest of the payments. you dont get to keep that car if he doesnt make his payments.

maybe america is different, I dont know.

notwithstanding the above, the main concern is you purchased a non GIA graded stone. It is also not particularly difficult to inscribe a piece of glass or similar. Did you take it to a gemmologist yet or appraiser? I couldnt deal with this type of transaction tbh. too many scam artists etc these days.

Good advice. I would add, since the OP mentioned he did not want to put a "hot" diamond on his girl's finger, that in the event the diamond was stolen and is traced back to the OP, law enforcement will sieze it. The only recourse would be to get the money back from the person he bought it from. That is obviously not a good place to be.

Most likely this worst-case scenario will not play out. But in lieu of additional assurances, that risk does exist.