The Way It Works
Many companies contract with rebate-processing centers, or fulfillment houses, to pay customers' rebate requests, some of whom market themselves with their low rates of redemption. Many of these companies design complex rules, have very short filing periods or ask for documentation that is nearly impossible to obtain - all in an effort to not give the consumer their money back.The Rebate Redeemption Game
The rebate companies will ask for copies of receipts multiple times or delay the rebate check for months. Applications will be ignored and consumers will have to redo the entire process.Many of the companies make the rebate check envelope look like junk mail so it ends up in the trash and consumers are stuck retracing all their steps to get the money again.
Often, months after a rebate application is sent in, the customer will be asked for other documentation to get their rebate such as codes off of the products box that was thrown out months before or original receipts that have already been sent away.
When Rebates Fail the Consumer
"The bottom line is, rebates unfailingly bring in billions in excess profits for companies that offer them, but when it comes to saving the shopper a dime, as rebates claim to do, they fail the consumer more often than not," Senator Schumer said. "It really is a combination of scrambling to meet deadlines, reading the extremely fine print, following unclear instructions and then crossing your fingers in hopes that the rebate check ever gets sent."More: How to Avoid the Rebate Rip-Off
Sources: U.S. Senator Charles E. Schumer and the FTC
