Nov 17, 2008 4:49 pm US/Pacific
What To Do If Your Rebate Provider Goes Broke
SAN FRANCISCO (CBS 5) ―
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Consumers may have a hard time getting a rebate from Continental Promotions Group.
CBS
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," said Emanuel Salinas.
"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," said Dave Lewis.
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. Companies including:
- Costco
- Fujitsu
- Home Depot
- Kragen
- Logitech
- Motorola
- PriceGrabber
- Samsung
- Staples
- Westinghouse
- XM Satellite Radio
But Gail Hillebrand with
Consumers Union said just because the rebate processor has gone bellyup doesn't mean you won't get your money.
"You never contracted with the rebate company. You contracted with the manufacturer and the manufacturer owes you money," said Hillebrand.
She 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," said Hillebrand.
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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