Gold shops charge additional fees when buying in installments

Consumers reported that some gold and jewelry stores impose additional fees in various forms, most notably increased manufacturing fees when purchasing in installments, compared to fees when paying immediately in cash.

They told Al-Emarat Al-Youm that a number of gold shops have started to deal in installments for purchases through specialized installment systems and applications, which have recently begun to spread in local markets.

For their part, sales officials considered these practices to be individual and due to the difference in sales policies, believing that they will disappear later with the increase in competition between stores that use installment systems.

In turn, the Dubai Gold and Jewellery Group confirmed that stores are not entitled to impose any additional fees in exchange for consumers benefiting from the installment systems available to them, stressing the need for consumers to refuse to pay them, and to benefit from the multiple shopping options and store alternatives in the markets in choosing outlets that provide appropriate prices and offers.

In detail, the consumer, Samer Saeed, said that a gold and jewelry store imposed additional fees when he requested to pay for his purchases in installments, compared to the fees due in the event of immediate cash payment of the full amount due, calling for not imposing these fees so that consumers can benefit from the installment systems and applications that a number of stores have started to deal with during the recent period.

Consumer Ahmed Abdel Qawi confirmed that buying in installments and paying in later installments, especially from gold and jewelry stores, makes it easier for consumers to buy gold jewelry, but some stores impose additional fees in various forms, including increasing the manufacturing fee, which constitutes an additional burden on consumers.

Consumer Mustafa Khaled stated that some gold stores have started to make additional profits by increasing certain fees by giving consumers the opportunity to benefit from installment offers for purchases that are available through popular systems and applications that the stores cooperate with, noting that these facilities are supposed to be available without charging consumers any additional fees that increase the financial burden when purchasing. Consumer Hasnaa Abdel Ghani considered that stores imposing additional fees when purchasing through installment systems increases the financial cost of shopping, especially since the differences are clear when paying cash immediately and paying in installments, calling for the need for outlets to cancel these additional fees.

For his part, the sales manager at a gold and jewelry store, Muhammad Ali, said that the use of installment systems at outlets often depends on the variation of sales policies between stores, stressing that consumers can reject any policies that do not suit them, and benefit from the multiplicity of outlets in local markets.

Rajan Vishal, Sales Manager at a gold and jewelry store, considered that imposing additional fees when purchasing in installments is an individual practice by some stores, to take advantage of the modernity of the systems and applications that have begun to spread in the markets. However, he confirmed that with the increased use of these systems and the increase in the intensity of competition, these practices will disappear.

Samir Saqr, Sales Manager at a gold and jewelry store, agreed that these practices are individual and are due to the difference in sales policies, and will disappear later with the increase in competition between stores that use installment systems and applications.

In turn, Chairman of the Board of Directors of the Dubai Gold and Jewellery Group, Tawhid Abdullah, confirmed that stores are not entitled to impose any additional fees in exchange for consumers benefiting from the installment systems available to them, which have begun to spread noticeably in the markets during the recent period, and allow consumers to buy and pay in installments, and at the same time contribute to stimulating store sales.

Abdullah explained that the installment systems for purchases are implemented through agreements between stores and intermediary institutions that provide these systems. Therefore, the consumer is not a party to the agreements, and he may not be charged any additional fees in exchange for benefiting from these facilities, which are optional and give stores added value in the markets.

He pointed out that consumers should refuse to pay any additional fees for purchase installment systems, and benefit from the advantages of local markets in terms of increasing alternatives and shopping options and increasing competition between outlets, which provides suitable prices and offers for consumers, stressing the importance of making a comparison between outlets to obtain suitable offers.