Retirement planning should be about peace of mind. Combining the stability of gold with the tax benefits of an IRA seems like a smart move, but finding the right gold IRA company is key.
That’s why I’ve done the legwork and conducted an in-depth 2024 review of Leer Capital, analyzing over 30 factors. Is this company the right fit for you? Let’s dive in and find out.”
We’ll uncover their fees, reputation, pros, cons, and, most importantly, whether they’re a legitimate and trustworthy choice for your savings. Spoiler alert: They have not (yet) what it takes to reach my Top-5 List of Best Rated Gold IRA Companies
Lear Capital Review 2024
Overall Gold Retired Select Rating: 3.5/5 (⭐⭐⭐)
Yes. Lear Capital boasts an impressive 4.8 rating on Trustpilot with over 1,900+ reviews. They’ve been a trusted name in the precious metals industry since 1997, facilitating over $3 billion in transactions.
However, with a recent $6 million lawsuit for misleading customers, bankruptcy appeals, and a mixed reputation among their customer base, it’s worth proceeding with caution as to whether Lear Captial is the precious metals service for you.
Is Lear Capital Legit?
Lear Capital’s expertise spans over 26 years, reflected in its strong online reputation. This includes a 4.8 rating on Google from over 359 reviews.
They further demonstrate their commitment to customer satisfaction with accreditations from respected organizations like the PMA (Precious Metal Association), Business Consumer Alliance, Consumer’s Advocate, NGC (Numismatic Guaranty Company), ICTA, and their status as an PCGS Authorized Dealer.
**Beware numismatic gold coins
They are not accredited by the Better Business Bureau, namely due to some recent controversy.
However, while this all sounds great, back in 2021, a lawsuit was filed against the Lear Capital founder, Kevin DeMeritt, with claims that 1,000 New Yorkers were defrauded out of $10 million (they weren’t sued to pay back the full $10 million in the settlement agreement), most of which were elderly residents who invested their retirement savings and were subject to hidden commission costs of up to 33%.
After legal proceedings, and once other states like California joined the lawsuit in 2022, Lear Capital filed for bankruptcy protection.
At the time of writing, Lear Capital was ordered and has agreed to pay $2.75 million to LA and $6 million to New York to settle the lawsuit and aimed to better its business practices, which includes adding policy changes like:
- Enablinge complete transparency of fees
- Allowsing a 24-hour cancellation period on certain transactions
- Bettering their complaint tracking procedures
- Providing better training to their staff and employees
This is what has created a mixed bag.
In my opinion, Lear Capital has been around for over two decades and has done some amazing work, but in some areas of their business, they fell into some bad practices for whatever reason – bad practices they got caught out on and are now in the process of rectifying.
To me, while Lear Capital has a long and established history, it’s recent engagement in some problematic practices leaves a bad taste. That said, I must note that Lear Capital’s recent efforts to improve its business practices and service quality are positive signs.
While Lear Capital appears to be a legitimate company and isn’t a scam in the traditional sense, there’s certainly reason to proceed with caution when considering its investment opportunities.
There are undoubtedly precious metal companies with stronger reputations and track records.
However, I must note that Lear Capital’s recent efforts to improve its business practices and service quality are positive signs.
Ultimately, it’s wise to thoroughly research and compare multiple companies before making any investment decisions in the precious metals market.
Update: Upon researching the latter part of this guide, I came across this FAQ, detailing Lear Capital’s perspective on their bankruptcy, as seen below.
As you can see, while we know that Lear Capital filed for bankruptcy to remove themselves from paying so many legal fees and compensation to consumers affected by Lear Capital’s poor business practices, they don’t mention this at all on the website.
While it doesn’t state it exactly, this answer gives the impression that gold investment dropped over the years and thus the company struggled, but now the popularity of gold investment is on the rise so they’re back in business, while showcasing some proof as to why they’re a great company.
Again, it’s this lack of transparency that worries me. If they had simply said that they had fallen into poor practices and were now looking to better themselves, I could feel hopeful. The fact they never mentioned the court cases it’s blatent denial.
Lear Capital Pros and Cons
BBB Rating: Not an Accredited Business by the BBB
Business Consumer Alliance Rating: AAA
Pros of Lear Capital
- Wide Range of Precious Metals: Lear Capital offers investors a diverse selection of gold, silver, platinum, and palladium products, allowing for portfolio diversification within the precious metals market and buying all your precious metals in one place.
- Secure Storage and Insurance: Partnering with the Delaware Depository provides secure, insured storage for your precious metals. This gives you peace of mind, knowing your assets are protected.
- Educational Resources: Lear Capital offers a extensive catalogwealth of educational materials, including market news, guides, and articles, including a free downloadable investor kit. This commitment to investor education helps you make informed decisions.
- Simplified Purchase Process: Lear Capital streamlines the process of buying precious metals and setting up a precious metals IRA. Whether rolling over an existing account or starting fresh, they make it easy to get started with a simple over the phone set-up process..
- Customer Service: Lear Capital actively promotes a personal’s representative service on their website, aiming to provide you with s are known for providing personalized guidancee, helping you navigate your investment choices, and ensuring a smooth experience. On Trustpilot alone, the supportsupper team responds to 100% of their negative reviews to rectify any issues.
Cons of Lear Capital
- Pricing Concerns: Some sourcesreports indicate that Lear Capital’s precious metal prices might be higher than competitors. It’s essential to compare prices with other reputable dealers before purchasing.
- Unclear High Minimum Investment: Lear Capital’s relatively high minimum investment for IRAs is unclear, and depends on what the sales rep refers to you as. There are numerous reports online, with investments ranging between $10,000 and $25,000. Lear Capital occasionally runs promotions that allow for minimum investments of just $5,000 or more. might not be suitable for investors with smaller budgets.
- Not BBB (Better Business Bureau) Accredited: BBB is one of the most reputable non-profit organizations in the US and Canada, aiming to provide transparency between businesses and consumers. However, Lear Capital is not accredited by BBB, and currently holds a 1.58/5 ranking, which is way below a decent standard.
- Mixed Customer Reviews: Online reviews present a mixed picture of customer experiences. Some praise their customer service, while others express concerns about pricing or sales tactics. It’s crucial to research thoroughly and weigh customer feedback carefully.
- Past Legal Issues: Lear Capital has faced legal challenges in the past, including lawsuits related to sales practices. It’s important to be aware of this history when considering the company.
Lear Capital Reviews & Ratings
- Better Business Bureau: 1.58/5 with 24 reviews. This indicates problems within the business and an unsatisfactory level of service or product. Lear Capital is NOT BBB-accredited.
- Trustpilot: 4.8/5 across 1,900+ reviews. This strong rating suggests a high level of overall customer satisfaction.
- Business Consumer Alliance (BCA): AAA rating with 5 Stars, and Lear Capital holds the status of a Charter business. This indicates a high level of commitment to ethical business practices and customer service.
- Consumer Affairs: 4.9/5. This high rating further reinforces the positive customer experiences reported on other platforms. However, this platform is known for being a controversial media and company reputation platform.
- Google: 4.8/5 across 350+ reviews. This rating aligns with other platforms, offering a consistent picture of positive customer sentiment.
- Retirement Living: 4.8/5. Lear Capital maintains a strong reputation on this the platform focused on retirement investment options.
- Yelp: 3/5 across 57 reviews. This lower rating could raise a point of concern and warrants further investigation to understand the reason behind the discrepancy compared to other platforms.
- NiceLocal: 4.5/5 across 74 reviews. A solidly positive rating further supports the company’s reputation.
- Chamber of Commerce: 4.7/5 across 231 reviews. This strong rating adds to the positive feedback across various review sites.
Lear Capital Ratings: A Comprehensive Breakdown
Choosing where to invest in precious metals can feel overwhelming. That’s why I always dig into what real customers are saying about companies like Lear Capital. There’s an interesting mix of glowing reviews and some absolutely awfulless-than-perfect experiences out there, so you need to be proactive in making sure you understand the full picture before making any purchasing decisions. so I want to get the full picture before I make any decisions.
High Praise for Customer Service
Investors have often greeted Lear Capital’s customer service with applause. Positive reviews tend to highlight the following:
- Helpfulness: “I have never had a company as helpful as Lear Capital” reflects a satisfied customer experience.
- Responsiveness and Efficiency: Fast response times and prompt delivery services are frequently commended.
- Exceptional Support Staff: Some team members receive specific mentions for their dedication that exceeds expectations.
The takeaway here is a sense of trust and reliance that several customers seem to associate with Lear Capital’s service.
Of course, looking across the various platforms, the numbers of positive reviews speak volumes.
Areas of Concern
The sunny sides of Lear Capital are occasionally overcast by issues that some investors have faced:
- Transparency Issues: A segment of customers has voiced concerns over unclear pricing and fee structures.
- Aggressive Sales Approach: High-pressure sales tactics have been reported, unsettling clients seeking a more guided experience.
- Unfulfilled Financial Expectations: There’s chatter about investments not delivering the hoped-for returns, leading to dissatisfaction and skepticism regarding positive reviews.
Notably, Lear Capital responds to negative feedback, which suggests an eagerness to rectify issues and improve its customer relationship.
Exploring customer reviews can be insightful way to help you choose a precious metals company that works for you. However, I would recommend looking at these online reviews with reluctance because many of them can be faked in a way or another OR inflated. This is simply an issue we have in the modern digital age.
Therefore, we take these reviews with a pinch of salt. Positive reviews can be looked at, but these are the reviews that’ll be faked, so you can generally skip past this and jump straight into the negative reviews.
This is where you’ll see the most authentic reviews (in my experience, people are most likely to leave a review for any company when they want to vent). Then, if the cons are avoidable or the company has handled the issues well, you can tell if you’re working with a reputable, legitmate company or not.
Let’s dive into some key points highlighted in Lear Capital’s online ratings:
High Praise for Customer Service
- Helpfulness: Customers often praise Lear Capital for exceeding expectations with their support.
- Responsiveness and Efficiency: Prompt responses and fast delivery win big points.
- Exceptional Support Staff: Specific team members sometimes get shout-outs for going above and beyond.
Again, take these with a pinch of salt as they’re most likely to be faked.
Areas of Concern
- Transparency Issues: Some customers report confusing pricing and fee structures.
- Aggressive Sales Approach: High-pressure tactics can leave potential investors feeling uneasy.
- Unfulfilled Financial Expectations: Cases of investments not meeting hoped-for returns create some skepticism.
With all this in mind, it’s important to note that Lear Capital does seem to respond to negative feedback, namely on Trustpilot where they respond to 100% of their negative reviews, which does indicate a willingness to improve.
The Bigger Picture of Trust and Credibility
The bankruptcy filing and lawsuit for misleading customers are significant events, and it’s essential to give it focus, among other things.
As mentioned above, back in 2021, Lear Capital and its founder, Kevin DeMeritt, faced serious allegations. A lawsuit claimed the company defrauded over a thousand New York investors, many of them elderly, out of millions in retirement savings. The accusations focused on hidden commissions, reaching a staggering 33%.
Lear Capital settled the New York case for $6 million and pledged to change its practices there. However, trouble continued in 2022 as other states, including California, Texas, and Iowa, joined the legal action.
Ultimately, Lear Capital filed for bankruptcy protection. They are now repaying settlements while promising to overhaul their business model.
But that’s not all.
The fact that Lear Capital took the ‘bankruptcy’ route is controversial.
As outlined in a 2022 Bloomberg Law article, the bankruptcy was not filed in ‘good faith,’ meaning that Lear Capital is a multi-million dollar company still operating to this day. They claim they’re simply filing for bankruptcy to avoid paying millions in legal settlement fees to retirees.
This means the victims of the misleading and aggressive sales tactics (as outlined by customer reviews) will not get the full compensation they may be entitled to, meaning they’re missing out on the company’s greed.
It may be because of this that the company is not Better Business Bureau accredited (one of the most reputable non-profit organizations that audit and grade businesses in the US), which is another cause for concern.
Additionally, in a 2017 article published on Truth in Advertising, the post explains how Lear Capital marketed videos that claimed that gold and silver prices over the ‘last decade’ had been so successful but conveniently missed out on the years 2011 – 2014.
Why?
Because prices for gold and silver dropped 33% and 60%, respectively, they left information out of the communications of their marketing materials.
They also used to claim that ‘you’ll be provided with a personal account representative’ and that there’s a ton of advice to help you make the best decisions for you.
However, subject to an older legal contract you sign when signing up, the company states:
Moreover, the service fees are still incredibly high, judging by online reviews, with some customers reporting fees of up to 34%. As you can tell from this example, the reply leaves a lot to be desired.
As you can see. Despite the many positive reviews, it’s wise to approach Lear Capital with a healthy dose of caution. Don’t ignore the negativeless-than-stellar feedback and their complicated legal and financial history.
It’s crucial to consider the whole picture – the good and the bad – before deciding if this is the right precious metals company for your investment.
Investigating the Claims of False Reviews
I can’t say I’m not concerned about the claim of fake reviews, so I got to testing it. A great way of doing this is by checking off a few points, for example:
- Looking for new accounts that haven’t been active for a long time
- Accounts only have one or two reviews
- Reviews that contain broad information, unrelated content, or a generic response
Important: This method doesn’t get the full picture, you have to give the benefit of the doubt to any review. For example, what if I am an investor who was scammed and I never used Trustpilot/the review website before, is my review fake? Take all online reviews with a pinch of salt. They’re never the be-all-end-all, just one brushstroke for finding the bigger picture.
What’s more, authentic accounts tend to be older than a year and have various reviews across different services and platforms. They also tend to go into a lot of detail about their specific case or experience.
So, what did I find?
Well, again, it’s a mixed bag.
Looking at websites like the Chamber of Commerce, the company has not had any reviews since April 4th, 2022, meaning there’s been no representation for the last two years.
Over on the reputable Business Consumer Alliance, there are six reviews, but none of them provide any real detail as to their experience, and all come from generic accounts reviewers with no profile picture with and only one review each:
And once again, there are no recent reviews after 2023.
Over on Trustpilot, things could be much better. Here, you can see a legitimate account with multiple reviews dating back to 2022, which is about normal.
However, the five-star reviews section is filled with recent reviewers with only one review, generic crazy statements, and not very insightful content.
And this one in particular seems odd, with this particular account randomly reviewing two companies on the same day, on a new account, in two very different styles:
Now, that’s not to say that there aren’t legitimate reviews and reviewers in there – there certainly are. The problem is that such disparity between the platforms and the reviews seems to exist, which we’ll explore now..
For example, Hhead over to Consumer Affairs, and you’ll see a staggering 96% five-star review rating, with zero one-star reviews.
That feels a bit abnormal, as every company should have at least a few bad reviews, simply form mistakes and human errors.
However, when you then read the news that Consumer Affairs is a for-profit service that has actually been under heavy scrutiny and even lawsuits for misrepresenting businesses for years, doesn’t approve reviews, and charges hefty fees for businesses to work with them, it’s really difficult to fully trust what they have to say.
Unlike Consumer Reports, which is a non-profit union go-to for many, famed for its rigorous testing and research ventures to protect consumers. The most important thing to remember when comparing comparison sites is whether or not people can post freely and companies can list for free.
The problem with Consumer Affairs is its notoriety with fees. According to a RICO complaint back in 2016, there were reports that to set up a business on the website could cost up to $9,000, and then roll with a $3,000 monthly fee for reputation management services.
This does seem to have been changed now, with the current website stating that “any company is free to sign up and use our services.” However, through ConsumerAffair’s Authorized Partner Program, you can pay a fee to have the site collection reviews on your behalf, usually written by writers, not everyday people.
All in all, it doesn’t seem as though Lear Capital is a scam, but it seems far from reputable, and until it gets accreditation for Better Business Bureau and has a clear, long-lasting streak of positive customer interactions and showcased practices over the next few years, it’s probably worth avoiding.
Lear Capital Website
Lear Capital Website: www.learcapital.com
Number of monthly visitors in the last three months: 16811.1k (source – SimilarWebAhrefs)
Fees
- Account set up fee of $280
- Maintenance fees of $200 annually (fee can vary depending on purchase amount)
All fees include storage, insurance, and 24/7 online account access via the Internet.
Lear Capital does offer a no-fee buy-back program (buys back at market price)
Interestingly, there is no clear figure as to how much the minimum investment is. It’s information that’s nowhere to be found on the website, which is a major red flag as this should be crystal clear.
Additionally, searching online produces mixed results, as you can see below. Therefore, I can only say that The minimum investment required for a gold IRA with Lear Capital is between $10,000 and $25,000, as this information is unclear online $10,000.
Background of Lear Capital
- Location of This Business: 1990 S Bundy Dr Ste 600, Los Angeles 90025
- Founded Date: 1997
- BBB Accreditation: since Not Accredited
Business Management:
- Founder/Chairman: Kevin DeMeritt
- Chief Executive Officer: John Ohanesian
Employees
Lear Capital showcases a team strength of 51-20030 members, as per their LinkedIn account., indicative of a well-established organization.
What do the employees say about Lear Capital?
Employee perspectives give us a peek into the company. After scanning Glassdoor, it appears that Lear Capital has a rating of 4/5 from their employees, with 75% of them recommending the firm to a friend.
How to invest with Lear Capital
If you’re interested in investing with Lear Capital, follow these simplified steps:
Step 1: First, get your free investor kit. This will explain everything you need to do and contains all the information you’ll need to know when investing in gold and other precious metals in a way that works for you.
Step 2: Call Lear Capital at +1 800-576-9355 and speak to a specialist. They’ll talk you through your options and help you set up and make your first deposit.
You cannot open an account or see what opportunities are available to you until you speak with a representative.
What Makes Lear Capital Stand Out?
As we’ve explored above, Lear Captial would like to think of itself as separate from the pack of other precious metal investment services, but the truth is this may not be for the right reasons.
Despite having been established as far back as 1997, Lear Capital’s track record isn’t ideal. With lawsuits against them, bankruptcy filings, plenty of poor reviews from past customers claiming high fees, a lack of transparency, poor returns, and dubious red flags across the board, you’d be forgiven for thinking this is a gold investment company worth staying away from.
What Makes Lear Capital Stand Out?
As we’ve explorde above, Lear Capital would like to think of itself as separates itself from the pack with its a combination of experience, personalized service, and educational resources. Let’s dive a bit deeper:
- Extensive Experience: Since 1997, they’ve been at the forefront of the precious metals investment game.
- Rich Educational Resources: From market insights to investment guides, Lear Capital empowers its clients with knowledge to make informed decisions.
- Exceptional Customer Service: Reviews highlight their responsive and helpful team, ready to assist at every turn.
- Innovative Products: Unique investment options like the Price Advantage Program and a Real-Time IRA set them apart.
Lear Capital vs. Other Precious Metal Alternatives
Now, I’m not denying that Lear Capital hasn’t got some things going for it. After all, they’ve hired two new players into their senior management ranks, as per their LinkedIn, are replying to negative reviews on platforms like Trustpilot, and so on.
However, I don’t believe this is enough. There seems to be no addressing the lawsuits or bankruptcy claims on their website (it’s an avoided subject), fake reviews abound, and plenty of factors that just don’t sit right, as we’ve covered today.
Examining Investing in precious metals has been on my radar for a while now. It’s about diversifying my retirement portfolio, and gold and silver seem like solid options. But with so many companies out there, it’s hard to know where to even begin.
So, what gold investment company should you invest with, if not with Lear Capital?
I did some digging, and one two names kept popping up: Augusta Precious Metals, a company who’s reputation certainly precedes them and Lear Capital. Let’s start with Augusta since its reputation definitely precedes it.
Augusta Precious Metals: My Top Pick
Right off the bat, Augusta Precious Metals gets my vote. Here’s why:
- The Reputation: They have an impeccable record. It had an A+ rating with the Better Business Bureau, numerous awards, and stellar customer reviews everywhere I looked. That kind of consistency speaks volumes.
- Education First: I’m no precious metals expert. Augusta is a renowned precious metals expert gets that. They havewith a whole team dedicated to educating clients, including a Harvard-trained economist, and a fully-fleged YouTube channel with over 220k subscribers. They break down market trends and explain IRA options – it’s empowering stuff.
- Customer-Centric: It’s clear they’re committed to long-term client relationships. I loved that I got a dedicated account representative. The process was smooth, transparent, and they were always available to answer my questions.
Things to Consider
Of course, no company is perfect. Here are a few things to keep in mind with Augusta:
- Higher Minimum Investment: Their minimum investment threshold is not easy to find, due to none of this information being displayed on the website, and mixed statements online via other websites. This is worrying, and the lack of transparency is concerning.of $1050,000 to $25,000 might be a hurdle for some, but it reflects their focus on quality products and long-term IRA strategies.
- Standard Disclaimer: They have the usual disclaimers about tech risks and being US-focused. This is common practice but something to be aware of.
American Hartford Gold: A Strong Contender
Another strong competitor to arise in the search for a reliable precious metals company led me to American Hartford Gold. They’ve been around since 2015 and seem focused on helping people diversify their portfolios with gold, silver, platinum, and palladium.
The Positives
Here’s what stood out to me:
- Solid Reputation: A+ rating with the BBB and glowing reviews on sites like Trustpilot – that’s a good sign.
- Streamlined Process: They seem to make setting up a precious metals IRA or buying bullion quickly.
- Customer Perks: Things like free shipping, price-match guarantees, and even bonus coins in some cases sweeten the deal.
- Industry Endorsements: Having big names like Bill O’Reilly backing them adds a layer of credibility.
A Note of Caution
- One thing I’d like to see is more up-to-date pricing on their website. That kind of transparency is important to me.
Why Consider American Hartford Gold
They prioritize client education, offering market insights and guidance. I appreciate their commitment to making precious metals investing accessible, whether it’s for a retirement account or a direct purchase. Plus, their buyback commitment provides a sense of security.
The Verdict
While Augusta Precious Metals remains my top choice, American Hartford Gold is definitely a strong contender. If you’re looking for a company with competitive prices, streamlined processes, and good customer support, they’re both worth checking out.
Frequently Asked Questions
What is Lear Capital?
Lear Capital is an investment provider leader in the precious metals investment industry. Since 1997, they’ve been helping customers diversify their portfolios by buying and selling gold, silver, platinum, and palladium.
What are Lear Capital Fees?
The fee structure at Lear Capital is multi-tiered. They charge a commission fee of up to $160 per precious metal coin.
Account setup fees are $200, with shipping and insurance fees could be up to 1.5% of the total purchase, and annual account fees of around $200 can apply.
What is the minimum investment with Lear Capital?
The minimum investment with Lear Capital varies by investment type. Typically, for gold, the minimum investment is around $10,000, while for precious metal IRAs, the minimum investment tends to be higher at $7,500.
However, reports online vary, and even the Lear Capital website itself doesn’t make it clear what the minimum investment total is. They do, however, sometimes run promotions that allow for minimum investments of $5,000 or more.
How long has Lear Capital been in business?
Lear Capital first opened its doors back in 1997.
What are Lear Capital’s Complaints?
Some common complaints against Lear Capital include claims of high sales pressure, lack of transparency regarding fees, and less-than-promised returns on investments.
While these issues are noted, it’s worth stating that Lear Capital appears to be proactive in addressing and resolving these claims.
Leave a Reply