Auction Houses and Non Paying Bidders

[mmonte4]

How does it work if an item is bid on and the winner doesn't pay? I assume they sell to the second highest bidder, but what if he is not longer interested? How does this affect the consigner?

It doesn't seem like the screening processes is particularly tough to get verified to bid, so it appears likely that nonpayment would be somewhat frequent.

[jetersbatboy]

Re: Auction Houses and Non Paying Bidders

I always read the auction rules before I bid on any site. And 100% of the sites state that legal action will be taken against the none paying bidder. No does this happen, I have no clue. But I tell you what, if I bid, I pay.

[trsent]

Re: Auction Houses and Non Paying Bidders

I always read the auction rules before I bid on any site. And 100% of the sites state that legal action will be taken against the none paying bidder. No does this happen, I have no clue. But I tell you what, if I bid, I pay.

I don't think it happens very often. The auction house can't afford to take legal actions against bidders, often in other states, and never with bidders in different countries. It is not realistic. It wouldn't be cost efficient.

Most auction houses I have worked with over the years generally, if the high bidder doesn't pay, they can't sell to the under-bidder without asking the consignor first, as then the consignor would feel violated. They usually relist the item in their next auction or return it to the consignor.

It is a trust system and the auction houses can try to screen their bidders but often it isn't until after a bidder doesn't pay can they suspend their bidding.

[mmonte4]

Re: Auction Houses and Non Paying Bidders

I don't think it happens very often. The auction house can't afford to take legal actions against bidders, often in other states, and never with bidders in different countries. It is not realistic. It wouldn't be cost efficient.

Most auction houses I have worked with over the years generally, if the high bidder doesn't pay, they can't sell to the under-bidder without asking the consignor first, as then the consignor would feel violated. They usually relist the item in their next auction or return it to the consignor.

It is a trust system and the auction houses can try to screen their bidders but often it isn't until after a bidder doesn't pay can they suspend their bidding.

The consigner is expecting to receive the money soon after the auction ends, so if two months pass and the auction house says that we're still working on getting the money, the consigner has to be a bit angry. Then the auction house tells him that they will have to put it in their next auction (which is 3 months later), this means the consigner is looking at something like 9 months to receive the money for the item he consigned. It's safe to say that the consigner will never consign to that auction house again. It appears that some auction houses use additional screening for bidders interested in "premium items."

[wildcats97champs]

Re: Auction Houses and Non Paying Bidders

alot of places now are asking for refs from other auction sites, i know that grey flannel does. that way they can check your status with the other house. they also ask for you ebay Id and work phone number. so they tend to work very hard to weed out the non-payers

[1929tudor]

Re: Auction Houses and Non Paying Bidders

I consigned an item with one of the big auction companies back in January and my item sold and the guy never paid so they put it in there April auction and it sold again for half of the first price in the first auction and again the buyer never paid so I contacted the auction company to do something about it and they said the buyer finally paid. Problem is according to there rules for a non paying bidder I'm intitled to the amount that is higher and they are supposed to get it from the first bidder which to this day 8 months later I have yet to receive. I have contacted them many times and have been told the check will be sent and never has. I will never consign to them again. What a run around telling me they'll send a check and never do. I'm out about 150.00.

[Dolphins23]

Re: Auction Houses and Non Paying Bidders

this is why we have ebay

[mmonte4]

Re: Auction Houses and Non Paying Bidders

I consigned an item with one of the big auction companies back in January and my item sold and the guy never paid so they put it in there April auction and it sold again for half of the first price in the first auction and again the buyer never paid so I contacted the auction company to do something about it and they said the buyer finally paid. Problem is according to there rules for a non paying bidder I'm intitled to the amount that is higher and they are supposed to get it from the first bidder which to this day 8 months later I have yet to receive. I have contacted them many times and have been told the check will be sent and never has. I will never consign to them again. What a run around telling me they'll send a check and never do. I'm out about 150.00.

Why not name names here so that board members can be aware should they wish to consign in the future?

[Mulligans]

Re: Auction Houses and Non Paying Bidders

Twice this year I have had non payment on 3 items at 2 different auction houses....Although they state that they will go after the person, I assume that it is not worth their effort.

[mmonte4]

Re: Auction Houses and Non Paying Bidders

Twice this year I have had non payment on 3 items at 2 different auction houses....Although they state that they will go after the person, I assume that it is not worth their effort.

They can't possibly do anything outside of sending the non-paying bidder a letter from their attorney which means nothing - only an empty threat. I filed a lawsuit last Friday and it cost me $750 just to file - and this is in-state. Its just not cost feasible for them.