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Lear Capital Review: Pros, Cons, Is It Legit?

Lear Capital has been in business for over 20 years and has developed quite a reputation in the industry. At this time, they have completed over three million dollars in customer transactions.

If you have read any of our other precious metal company reviews, you know looks can sometimes be deceiving. One such company in our reviews appeared to have good reviews, but they suddenly began performing a terrible disservice to their precious metal investment customers.

Once you have decided to invest in a precious metals IRA, you must choose the right company to guide you. Is this the best company to help you buy coins? Keep reading as we delve deeper into this company and what it offers. Stay tuned to the end for our final verdict.

What Kind of Company is Lear Capital?

Lear Capital is a precious metals company that was founded in 1997. The company promises a superior customer care team, helping its customers roll over their existing retirement accounts or open a new precious metal IRA.

The company provides its customers with a personal account representative to help them with their precious metal IRAs. They also offer a price advantage guarantee to ensure customers receive the best prices on their physical gold purchases.

Ratings, Reviews, & Complaints

Before you agree to sign up with any company, you must check out their ratings. When finding companies to help you with your retirement savings, research is your best friend. Never trust any company with your cash until you are sure they are the best.

In our research, we could not find Lear on the Better Business Bureau website. We will continue our search. We did find them on the Business Consumer Alliance website, and we were immediately troubled.

We found out that the company has filed for Chapter 11 bankruptcy. The total amount in dispute on the site is $236,063.00, and Lear Capital only has a 78% complaint resolution index.

The BCA reports that there have been nine customer complaints in the last three years. The following are some of the complaints lodged against the company:

  • The company made false claims about the appreciation of coins.
  • They also made false claims about the value of bullion coins.
  • False claims were made about the grading of coins.
  • They used misleading sales tactics.
  • They offered false claims about slab certification.
  • They overcharged for gold, silver, and platinum bullion.
  • The company charged extremely high commission fees for coins.

The company filed for Chapter 11 bankruptcy protection on March 2, 2022, after reaching settlements totaling $8.75 million with the Los Angeles City Attorney's Office and New York Attorney General. Lawsuits stated the company breached state consumer protection laws.

Those promises of outstanding customer service no longer seem so promising after reading about this company. What happened to their pursuit of customer service? Were they always scammers, or did they start off being a legit company?

Is Lear Capital a Scam?

If you visit Lear Capital's website, you will see that it is still running strong. The company is still in operation, which is allowed under bankruptcy law.

They may not be a scam, but it appears they definitely use deceptive sales tactics and have caused many customers to be out of their retirement funds. If you are buying gold, you do not want to trust just anyone with your hard-earned savings.

Although some customers have had a positive experience, the information we have learned about the company causes us to see red flags. Their records show this company has lost a lot of revenue due to settlements.

This company has been featured on Fox News and other big networks, making people think they can trust LC. Because of the lawsuits lodged against them and the bankruptcy, we are beginning to wonder if this company will be around for much longer. Only time will tell.

What Precious Metals Products Does Lear Capital Offer?

LC offers an array of metal options for its customers' self-directed IRAs. If you check out their online store, you will find some of the following offerings:

  • $10 Liberty Gold Coin
  • American Eagle Coin
  • Australian Kangaroo Coin
  • Gold Snowy Owl Coin
  • Gold Orca Coin
  • Gold Buffalo Coin
  • Silver American Eagle Coin
  • Silver Polar Bear Coin
  • Silver Snow Falcon Coin

The company offers gold and silver rare coins, silver bullion, and many other coins and bars. When surveying their website, we found the gold looked promising, and the price was listed with an asterisk.

The website warns the price will change at the time of checkout based on the current market charts of physical metals.

The company sells some coins that may not be IRA-eligible. According to some customers, buying metals from Lear Capital is easy, and the company offers great communication.

What are the Fees Involved When Opening a Precious Metals IRA with Lear Capital?

When opening precious metal IRAs with the company, you will pay an annual fee of $180. We could not find transparent information on the Lear Website regarding their fees.

Unfortunately, this is not atypical because many companies do not offer fee information without a call to a company representative.

How to Start a Gold IRA with Lear Capital?

Getting started with a gold IRA is a simple way for people to diversify their retirement accounts and hedge against inflation. Gold bullion typically retains its value even when the dollar's value begins to fall. The following are some steps involved in opening precious metals IRAs with Lear:

  1. You will need to open an account by talking with a Lear Capital account specialist. The company has an entire department devoted to helping people with their applications. The application process typically takes around ten minutes or less.
  2. Lear will assign a customer service representative to your account to guide you through investing in precious metals. Your new account will be operational within 24 hours.
  3. Next, you will roll over funds from an existing IRA or wire funds via a transfer. Note that most companies charge a wire transfer fee for any online account.
  4. Your assigned representative will guide you in purchasing coins from their vast inventory. Once you complete the order, you have 48 hours to submit payment.
  5. Finally, you will need to sign the Shipping & Transaction agreement. This agreement ensures your purchased coins will be sent to your storage facility or home. You will receive the order in a short amount of time. You must hold IRA precious metal in a private storage facility.

You can also sign up for special packages of gold coins sent on a recurring schedule. According to some reviews, the investment process is straightforward, and the comprehensive resource library offers educational benefits.

Why Should You Put Your Savings Into Gold and Silver Coins?

Now, let's get to the good stuff. Putting your money into a precious metals IRA offers tax benefits you will not find with some types of individual retirement accounts.

Gold IRAs allow investors to set aside tax-protected retirement assets so they will be prepared for the future. These work in much the same way as a normal IRA.

How to Track the Performance of Your Precious Metal Investments

The IRA custodian used by Lear is Self-Directed IRA Services Inc. Through this custodian, you will have access to your account so you can track your precious metal coins' performance.

The company also sends quarterly statements directly to your home. If you ever have questions, your Lear Capital representative will help you.

Many companies out there promise the world and cannot deliver. One such company is Lear. It is up to you to do your own research to learn if investments with Lear will be wise.

FAQ About Lear Capital

You have likely realized there are better companies in the industry than LC. There are reasons they have had many lawsuits. The following are some of the top questions people have about this company.

Is Lear Capital Going Out of Business?

At the time of this writing, Lear Capital is not going out of business. The company has filed for Chapter 11 bankruptcy, but it can continue to operate the business, take payments from customers, and even borrow funds. Chapter 11 bankruptcy is a type of reorganization bankruptcy.

Who Owns Lear Capital?

Kevin D Demeritt is the owner of Lear Capital. He is the chairman and founder of the company.

How Does Lear Capital Make Money?

Lear Capital makes money from its sales of coins. They also receive proceeds from the fees they charge for transactions and services.

What Is the Best Company From Which to Buy Gold?

The best company to buy gold from is Goldco. Unlike Lear, Goldco has a high customer service level and has never been forced to file bankruptcy because of lawsuits waged against them. Goldco offers a wide selection of IRA-approved coins and can help you diversify your investment portfolio.

Our Final Verdict

We cannot recommend this company because of what appears to be fraudulent activity and lawsuit settlements. We believe all investors should steer clear of this company and put their trust in companies with a solid reputation. There are much better choices out there.