A big part of what we do at The McFarland Group is save our clients money. If you’ve purchased a diamond lately you may be entitled to a partial refund! Check out this article, posted at http://articles.moneycentral.msn.com/SmartSpending/ConsumerActionGuide/BuyADiamondGetARefund.aspx
By Marilyn Lewis
How would you like a little refund on that diamond nose stud you bought in your wilder days? Or the diamond engagement ring you purchased for your sweetie when you settled down?
If you bought a piece of diamond jewelry — or jewelry with a diamond in it — between Jan. 1, 1994, and March 31, 2006, you may be eligible for a refund as part of a recent settlement of a class-action lawsuit alleging that De Beers, the big South African diamond company, had cornered the market for diamonds for decades, keeping prices artificially high.
In settling, De Beers is shelling out $295 million to put the trouble behind it — $135 million of which is earmarked for consumers rather than wholesalers.
"While we don’t accept the allegations, we do believe that settling this suit is in the best interests of our clients, our shareholders and consumers," De Beers says in a statement on its Web site.
How refunds are calculated
Your share, if any, will be small. Everyone has to split the pot, so the size of each refund depends on how many other consumers file claims, and for how much. There could be hundreds of thousands — even a million — consumer claims, says Joseph J. Tabacco Jr., the managing partner at Berman DeValerio Pease Tabacco Burt & Pucillo in San Francisco. He’s one of the lawyers behind the lawsuit.
Theoretically, a $10,000 diamond ring is eligible for a $4,500 refund. But realistically, lots of competing claims will dilute that payout considerably. There’s no way of knowing yet how big a refund the $10,000 purchase could bring, says Tabacco.
Here’s how refund eligibility is figured:
|
Purchase price |
Maximum claim |
|
Mixed-stones jewelry
|
Less than $200
|
6% of the retail price
|
|
Mixed-stones jewelry
|
$200 or more
|
14.5% of the retail price
|
|
Diamonds-only jewelry
|
Less than $200
|
10.5% of the retail price
|
|
Diamonds-only jewelry
|
$200 to $999
|
27.5% of the retail price
|
|
Diamonds-only jewelry
|
$1,000 to $5,499
|
32% of the retail price
|
|
Diamonds-only jewelry
|
$5,500 to $9,999
|
38.5% of the retail price
|
|
Diamonds-only jewelry
|
$10,000 or more
|
45% of the retail price
|
|
Loose diamonds
|
Any and all
|
59% of the retail price
|
How to make a claim
Even if the payout is diluted, who doesn’t like a bit of cash back? You have until May 19 to make your move. Here’s how to do it:
- Go online to the settlement site to file a claim online. Or download a .pdf claim form to mail it to the address on the form, postmarked no later than May 19. Or phone 1-800-760-5431 to get a form mailed to you.
