They have been told to make it clearer that the supposedly high prices paid were scrap prices and refrain from a practice that has seen jewellery melted down before an offer had been formally accepted.
Cash4Gold in London, CashMyGold in Manchester and Postal Gold in the Isle of Man all came under fire, while a Berkshire company trading as CashYourGold and Money4Gold, of St Albans, Hertfordshire, were also investigated but have subsequently ceased trading.
Firms promising to pay 'top' prices for gold have mushroomed since bullion began its steady upward trajectory two years ago.
The OFT found that customers of the five investigated companies were often paid well below market values, in some cases under half of the scrap prices sellers would have received from a bona fide jeweller or bullion dealer.
The OFT also raised concerns about the practice of sending consumers a payment, which, if not rejected and returned within restrictive time periods, meant that their "silence" was taken as consent to the transaction. In some of the worst cases, customers who later decided their offer had been unacceptable were told their jewellery had already been melted down.
Cash4Gold, CashMyGold and Postal Gold have now agreed to send quotes to customers. These must be formally accepted with all risks clearly stated, before they can melt any gold items.
