Nov 18, 2008 7:58 pm US/Eastern
Consumer Warning: Major Rebate Company Collapses
If You Try To Cash Checks From Many Major Retailers Or Manufacturers They Could Very Well Bounce
NEW YORK (CBS) ―
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Home Depot is one of the many big companies that send a lot of money to CPG.
CBS
Here's a warning for holiday shoppers: In this tough economy, retailers are not the only ones hurting. The company that processes rebates has filed for bankruptcy and that means uncashed rebate checks will bounce.
If you bought something expecting a rebate, this may affect you. The largest company in the country responsible for filling rebates is in trouble. It filed for bankruptcy, because -- you guessed it -- it's out of money.
In this economy, it's not hard to find consumers who hunt for and use rebates.
"Especially on things that make a little more sense to invest your time into filling out paperwork, like computers or other stuff that gives you a manufacturer's rebate or a store rebate. I definitely take the rebates," consumer Emanuel Salinas said.
Added Dave Lewis: "I've been lucky. I've filed the paperwork for many over the years and I've ended up receiving all of them over time."
But the largest rebate processor in the country, Continental Promotions Group or CPG, is out of cash -- bankrupt.
CPG took millions from well known manufacturers and retailers and was supposed to use the pot to pay out rebates. They include hundreds of companies from electronics and home improvement suppliers to auto parts stores such as: Costco, Fujitsu, Home Depot, Kragen, Logitech, Motorola, Pricegrabber, Samsung, Staples, Westinghouse and XM Satellite Radio.
But Gail Hillebrand with Consumers Union said just because the rebate processor has gone belly up doesn't mean you won't get your money.
"You never contracted with the rebate company," Hillebrand said. "You contracted with the manufacturer and the manufacturer owes you money."
Hillebrand said to bring your rebate request directly to the manufacturer or store owner, and for future purchases, ask for a discount up front.
"This new development is an additional reason why retailers should advertise real price discount and for consumers to insist on it," Hillebrand said.
And avoid rebates altogether.
"It might make me question the validity of rebates in the future, if the company goes under and not getting paid," said consumer Elayne Steiglitz.
You can check on the status of your rebates at websites like rebatestatus.com and myrebates.com.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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