Rebates consistently produce consumer complaints
of ConsumerAffairs
After credit cards and unauthorized charges, nothing seems to get consumers more worked-up than a rebate runaround. But as has been previously reported here,frustration has been designed into the rebate transaction.
Michael, of Caldwell, Idaho, was attracted to Staples' paper rebate. Just buy two reams of paper and one ream is just $1.00, after the rebate, he was told.
"However, you had to pay the full price of $10.60 and then go online and find out how to apply for their silly rebate," he told ConsumerAffairs.com. "The online experience took over 30 minutes and was very user unfriendly."
Chris, of Denver, went to Discount Tire because of a $40 rebate. But when he got home, he checked his invoice and realized that, not only did he pay full price, but was actually charged an additional $40!
"When I called to point out the mistake the manager said 'oh yes - it's a glitch in the computer and the cashier has to over-ride to give you a credit.' They offered a refund but I had to go back to the shop in person, Chris told ConsumerAffairs.com. "When I went back it took some convincing for them to understand they owed me $80. The $40 they charged me PLUS the forty rebate."
Chris wonders how many other consumers didn't notice the charge instead of the rebate. His advice? Check your receipts.
New Weapon
Businesses have always tried to make it hard to redeem rebates because they significantly cut into profit margins if everyone uses them. A new weapon in their campaign to reduce rebate expense is the debit card.
On one hard, getting a debit card containing the amount of the rebate instead of a check seems more convenient. You can spend the money where-ever you want. However, there can be problems for the consumer that work to the advantage of the business.
For example, if your pre-paid rebate debit card has $50 on it and you make a purchase for $42.87, how are you going to get the remain $7.13 off the card? Most stores do not allow you to use a debit card for a purchase that exceeds the amount on the card. However, if you tell the cashier ahead of time you only want to put a portion of your purchase on the card, in some cases you can.
However, consumers should carefully plan how they use these rebate debit cards, asked questions, and hope you don't the experience of Glenn, of Tijeras, N.M, who got a $50 debit card rebate from T-Mobile when he agreed to extend his contract.
"I tried to use the $50 debit card but the card locked up at $43.56," Tim told ConsumerAffairs.com. "When I called T-Mobile customer service to complain, Lisa the rep said I actually over charged the card by $6.44 and that I owed T-Mobile that amount. I asked how could a $50 debit card be over charged when that was its limit? The rep had no answer, but said I'd soon be getting a bill for the amount owed."
Rebate Scams
Of course, some rebates are not rebates at all, but are out and out scams. Michelle, of Liverpool, N.Y., discovered that the hard way, she said, when she received a "rebate" check after purchasing PediPaws at her local Bed, Bath and Beyond.
"I cashed it at my local bank, and then discovered a $149.99 unauthorized charge on my checking account statement," she told ConsumerAffairs.com. I investigated the name on the check, Buyers Advantage, as well as Trilegiant Corp., and discovered many, many on-line reports of fraud regarding this company and method. My bank also investigated, and returned the $149.99 to my account."
Michelle's first tip-off that something wasn't quite right should have been the fact that she quickly received the "rebate" check. Generally, it takes a long time to receive a legitimate rebate.
Despite the more than 800 rebate complaints received at ConsumerAffairs.com in the last 12 months, why do we keep falling for the rebate trap? Probably because all consumers want a bargain. When a business can advertise a $299 smart phone for $199, after a $100 mail-in rebate, consumers quite logically think they're getting a deal. Some are, of course, but a lot more aren't.
A good rule of thumb is to focus on the regular price when you're shopping for an item, and not count on ever receiving the promised rebate. Otherwise, you too could end up in the rebate trap.