FYI: Everbank changes (and "unchanges") certain terms and conditions

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pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2259
FYI: Everbank changes (and "unchanges") certain terms and conditions

Hi Folks-

  While  checking out headlines and stories on www.marketoracle.co.uk, I came upon a story discussing Everbank, which I know a number of people here have discussed and use.  The article is by Gordon Gekko, at http://www.marketoracle.co.uk/Article17865.html, entitled "Paper Gold Market Is Going To Explode, But Physical Bullion NOW!"  What caught my attention was this segment:

Gekko wrote:

Jacksonville, FL based EverBank – a bank with approximately $8 billion in assets and 1800 employees according to the company website – recently sent this notice to customers (courtesy of Warren Bevan):

"Non-FDIC Insured Metals Select Changes" -
Section 6.3.7. General Terms: We have added language clarifying our right to close your account. We may close your Metals Select Account at anytime upon reasonable notice to you. If we believe that it is necessary to close your account immediately in order to limit losses by you or us bold mine/pinecarr [GG: We really don’t give a s**t about you; it’s us that we care about], we may close your account prior to providing notice to you. Notice from us to one of you is notice to all of you [GG: the nerve of these people!]. If we close your account, we reserve the right to convert your Precious Metals to U.S. dollars and tender the balance to you by mail [GG: I am willing to bet my entire Gold stash that when you receive these "converted" dollars, they will be nowhere near the market price of physical. What did you think that whole "limit losses" thing meant?] .

If you have a "Non FDIC Insured Metals Select" account with these people, you can pretty much say goodbye to any chances of ever seeing your metal. This is a clear sign that the (already tight) availability of physical metal at the manipulated Comex futures paper price is in danger of vanishing altogether. Think about it. What is the scenario in which they avoid catastrophic losses while at the same time sending you the US dollar value of the metal? When the official or Comex price has fully decoupled from the physical price. Expect to see more such notices from banks offering Metals "Investments".

 Given that this is (or at least struck me as) pretty explosive information, I did a search to try to get a handle onwhat others were saying about this, to try to assess how credible this report was. What I came up with is this next article, "The Everbank Gold Story", at http://cryptogon.com/?p=14285.  Per this article:

Quote:

Dozens of blogs are reporting that EverBank has changed the terms and conditions with regard to their Non-FDIC Insured Metals Select product.

The typical way that stories like this work is that one goldbug uses another goldbug as a source and on it goes. I decided to authoritatively verify this one before running it on Cryptogon. I went over to EverBank to read their terms and conditions.

The changes, cited on dozens of sites, weren’t present on EverBank’s site. [bold mine]

Cryptogon.com goes on to say that they wrote Everbank to ask about the reported stories, and quickly got the following response:

Quote:

Yes, the change was made to our Terms and Conditions, but we have since
pulled this language from our T&Cs
. I appreciate you doing some
research on this issue. Several bloggers seem to have picked up this
story and ran with it, never even asking about the language. The
following is the response our President, Frank Trotter has been sending
out in response to these blogs and newsletters:

“We have noticed some blog and newsletter comments concerning the new
Terms and Conditions for our EverBank Metals Select accounts. As part of
our periodic review of these contracts we recently standardized and
consolidated the Terms and Conditions for all EverBank accounts and
products. In connection with this process, we have included the new
language in Section 6.3.7.3 of the Terms and Conditions that has been
quoted in some commentary.

This language was not intended to allow EverBank to close your Metals
Account arbitrarily or without good reason. This technical contract
language was added to clarify EverBank’s rights in the event that
unforeseen circumstances necessitated a change in EverBank’s ability to
act as custodian for precious metals purchased by you through EverBank.
Given the concerns that have been posted and the fact that we do not
foresee any likely circumstance that would affect our ability to
continue to serve as custodian for your precious metals, we are in the
process of deleting Section 6.3.7.3 from the EverBank Terms and
Conditions in its entirety and notifying customers.

As a reminder you can request that metals held in any EverBank Metals
Select account be shipped to you (in the case of allocated accounts) or
converted to a specific physical form and shipped to you (in the case of
non-IRA pooled accounts) at any time.

I hope that this clarifies the matter and invite those with further
questions to contact the World Markets desk directly.

Thank you -

Frank Trotter, President, EverBank Direct”

Please don’t hesitate to contact me with any additional questions.
Again, I appreciate you doing the legwork to verify the information.

Thanks,

Chris Gaffney, CFA
Vice President

There are also a couple of interesting comments to this latter story at the linked site.

I leave it up to you to decide what to make of this.  But it seemed like the kind of information that I would want to be aware of if I was invested in precious metals via an Everbank product.

best,

pinecarr

digitalwarrior's picture
digitalwarrior
Status: Member (Offline)
Joined: Apr 5 2010
Posts: 1
Re: FYI: Everbank changes (and "unchanges") certain terms ...

Gekko has posted a follow up piece to the original post:

http://gordongekkosblog.blogspot.com/2010/04/everbank-deletes-now-infamo...

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2259
Re: FYI: Everbank changes (and "unchanges") certain terms ...

Thanks for the update, digitalwarrior!  I hadn't seen that.

-pinecarr

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