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WFMY News 2 - 02/18/2006

Rebate Runaround

Alan Wagmeister

King, NC -- Rebates are a common complaint to Call for Action. Consumer advocates feel this is intentional.

"I don't know whether I would ever do it again or not. Send in forms to get a rebate," says Adel Lewellyn.

She bought a new computer that came with a $100 rebate.

"Well, it made me feel good to think it was going to pay for the computer, then when I didn't get it I was angry. I was disgusted."

She's not the only one. Experts say the frustration is by design.

"Companies make rebates a hassle on purpose because they don't want them to get redeemed. If they wanted to sell you that product for $25, they would do it. They wouldn't ask you to buy it for $125 and make you do this complex rebate process," says Rob Thompson of NC PIRG, a consumer interest group.

One company put out its rebate redemption rates. Only 10% of the people sent for a $10 rebate on a $100 product. On a $200 product with a $50-rebate, the number increased to 35%. All in all, consumer experts say 40$ of all rebates are never redeemed.

"Well you say 40% of the people don't send it in, I wonder how many people send them in and don't get the money," says Adele.

"You have to send the UPC code often, the receipt, you know maybe a piece of your dog's hair whatever it might be. But, they make it almost impossible at times to get these rebates redeemed, and that's the whole purpose of it," says Thompson.

Most companies do not handle their own rebates. They hire other companies to process them, hoping you'll forget to send in the rebate, fill out the form wrong, mail it late or not read the fine print.

"They're not looking for the highest rate of redemption, I'm telling you that right now. They're going to chose the companies with the lower rate of redemption in most cases, because they don't want to pay out to the consumers," says Thompson.

For Adele, the company involving her rebate is out of business, so it could be game over for this rebate and others in the future.

"Kind of skeptical. I may or may not do it again. I will have to think about it," says Adele.

To make sure you get your rebate, you should follow these simple tips:

Read the offer before you buy, the fine print is the trap. Know everything you will need to redeem the rebate.

Fill out the form immediately, don't wait. Most rebates have a time limit from the date you bought it.

Make copies of everything, should something go wrong you have proof.

Mail it certified mail with return receipt. This way the company can't say they didn't get it or it wasn't on time.

Now if you don't get your rebate:

- Contact the manufacturer or their rebate processing service in the way specified in the rebate. This is why you should keep a copy of all your documents.

- Be ready to resend your proof, and again, mail it via certified mail with return receipt.

- If that fails, you may want to write a letter to the company saying you've attempted to claim your rebate but to no avail, and you will report the company to the Federal Trade Commission and Attorney General's office. Make sure you give the company 30 days to respond.

- If the company fails to respond, file a complaint with the FTC and the NC Attorney General, and send along copies of your documents.

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