WENDY KNOWLER: Auctioneer Stephan Welz & Co faces backlash over payment delays
Consumer journalist Wendy Knowler tackles two cases involving one of South Africa's leading auction houses, Stephan Welz & Co.
Auction / Wikimedia Commons: Ravenelartgroup
Pippa Hudson interviews consumer journalist Wendy Knowler.
Listen below.
Many individuals who choose to sell their valuables at auction are elderly and grappling with rising medical and care expenses.
Letting go of cherished items, such as art or jewellery, can be an emotionally taxing experience.
For those who opted for one of South Africa's leading auction houses, Stephan Welz & Co, this burden was further exacerbated by significant delays in payment.
"These are people who in many cases have taken the step realising that there's no income coming in so they need the money... they're selling because of financial need."
- Wendy Knowler, Consumer journalist
CASE 1:
Such was the unfortunate experience of Dave Sandham, a pensioner from Somerset West, and his wife Carol, who decided to auction off some of their valuables – watches, silverware, and carpets.
Having heard positive feedback about Stephan Welz & Co, they chose this auction house, with Dave’s daughter acting on their behalf.
Initially, they sold two valuable watches at the auction on 18 March.
They were impressed with the service until the promised payment deadline of 5 May passed without receiving their R48 600.
In early June, company manager Lawrence Friedman assured them that payment would be made along with interest for the delay. However, when payment finally arrived a month later – just after Dave’s daughter threatened legal action – it was without the promised interest.
By the time they received payment, they had already contracted the firm again to sell a diamond signet ring, several pieces of silverware, and a carpet at the premium auction on 19 June.
Once more, the agreement stipulated that proceeds – amounting to nearly R40 000 – would be payable within 45 days post-auction, or by 2 August.
On 6 August, they received an email from Friedman apologising for the delay and stating that payments were scheduled for 23 August.
He added that interest would be applied to the capital due to the delay.
However, by late September, the Sandhams had yet to receive the proceeds or interest from the June auction, nor the promised interest from the March sale.
"Everything that's due to him has now been paid. He is very relieved."
- Wendy Knowler, Consumer journalist
CASE 2:
In June, Helga Jansen-Daugbjer brought a similar complaint to Knowler’s attention.
She and her siblings had agreed to sell three cherished Peter Clarke paintings from their widowed father's collection through Stephan Welz & Co., placing them in the auction on 20 February.
By mid-April, they still had not received the proceeds – over R280 000 – and were met with silence when they inquired about the non-payment.
After threatening legal action, they received a response promising that payment would be made by 25 May, along with interest as a goodwill gesture.
However, the actual payment was delayed until late June, making it a four-month wait since the sale.
Knowler emphasises that the Consumer Protection Act prioritises transparency, suggesting that Stephan Welz & Co. could enhance their communication by providing a clearer and more realistic timeline for payments.
This approach would empower clients to make informed decisions, allowing them to explore alternative options if the payment schedule does not align with their needs.
"Lack of delivery compounded by lack of communication is never going to end well."
- Wendy Knowler, Consumer journalist
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