How to Avoid Rebate Scams

The sale of large ticket items including automobiles, appliances, computers and entertainment centers is so competitive today large and discount retailers must use every tool available to gain a sale. In an attempt to distinguish themselves from competitors many large discount stores and dealerships will run full page ads in local newspapers advertising the lowest possible price. Often these eye catching ads offer the product for hundreds, even thousands of dollars below other advertised prices. A prospective buyer seeing such an ad must be very cautious and keep in mind the old saying, 'when it seems too good to be true, it usually is'.

In most instances the unbelievably low advertised price includes a hidden condition which makes the lower advertised price possible. With automobile dealerships this is most often includes very, very small print which states:.... 'this price is available only after your trade-in allowance of a minimum of $xxxxx.xx'.

Other dealerships will advertise a low price which is also explained in small print as:..., 'available at this price after a minimum 12 month lease period'.

One of the most practiced sales come-ons, which is widely used by big box electronics sales outlets, large chain office supply and computer stores is to advertise a big ticket item at hundreds of dollars below that of all other dealers. The advertisement typically reads:... 'purchase this computer bundle, including computer, 20 inch, flat screen monitor, color printer, and selected software for only $xxxx.xx .

This is accompanied by an asterisk, which refers to a small print footnote at the bottom of the full page ad which reads:.. 'price is after 4 mail in rebates'.

While many retailers have an excellent reputation for honoring mail-in rebates there are several who well known retailers who are notorious for using rebates to increase sales, but have every intention of either failing to pay the rebate or if all else fails delay payment and hold and use the buyer's money for as long as possible.

One example in which I was a victim serves as an excellent example and warning of rebate chicanery.

Being in the market for a replacement of my aging computer I had followed closely prices for the brand computer and supporting system I planned to buy, and so I was pleasantly surprised to see the complete system, computer, monitor, printer, and software advertised at a price which was 30% below any I had been able to find after several months of searching locally and on line. One additional 'hook' in the ad offered a 'free' brand name photo printer if the bundle was purchased during the 'limited time offer'

It seemed 'too good to be true'....but appeared to be such a good deal I purchased the bundle as advertised that same day.

Now, the fun begins.

On paying for the purchase I was surprised to find the total bill was $100.00 higher than the advertised price. When I questioned this the clerk smiled and advised me that the difference was the cost of the photo printer I had purchased. On my reminding her that the photo printer was 'free' she smiled politely and said that it was free , 'after rebate', at which point she handed me four 12 inch long cash register receipts, each containing lengthy rebate request forms, which I was to complete and mail in.

It was at this point that 'too good to be true' should have rung a bell telling me to cancel the sale, demand a refund and walk away.....but, I didn't. ...Anxious to set up my long anticipated and much needed computer I folded up my bundle of rebate request forms and hurried home to complete and mail them.

The rebate request procedure required that four lengthy rebate information forms be completed. One rebate was on the computer, and three rebates were required on the 'free' photo printer. The four rebate requests were required to be mailed individually even though they all were addressed the the same office supply company rebate center. In addition to the rebate request form an original receipt and original proof of purchase bar code from the product package was required..............it should be obvious that there could be no original proof of purchase bar code in the three different envelopes required for the photo printer rebate request.

All forms were completed and mailed (using photo copies of the photo printer proof of purchase) on the same day of purchase.

After 30 days I checked the rebate web site provided by the office supply company. The web site is designed to indicate the status of an individual's rebate request, but advises buyers to wait a minimum of 60 days from submittal before making status inquiries.

40 days after submitting them two of my rebate requests appeared on the web site and were given the status of "checking submitted documentation". The remaining two requests were missing.

A third request appeared two weeks later and was put into the same status, "checking submitted documentation".

The forth request never appeared on the web site.

After six weeks of finding my requests stuck in the "checking documentation" status category, I began to make inquiries by email, through the web site. The web site promises a response within 24 hours.....I received no response to my first three inquiries.

It was now apparent that if the rebates were going to be paid at all, it would not be easy or fast or without a fight.

It would take far to much time and space to document all of the tactics employed by this company in attempts to discourage me from insisting on payment of the promised rebates. I am totally convinced that this company has a staff in place to throw up as much 'red tape' as is possible in an attempt to discourage customers from receiving rebates.

By way of warning others who might read this....Here are some of the responses I received to my inquiries after 3 of 4 requests remained in the "checking documentation" status for over six weeks ( the forth did not show up at all):

" The rebate form was not complete".

Having a copy of the completed form I faxed a backup copy....even after faxing I received this message two additional times from different customer reps.

" The rebate request in question did not include the required proof of purchase".....(received this response from four different reps, one for each rebate submitted)

After re-sending in a photo copy of the proof of purchase (4 times):

" The receipt submitted did not include the rebate item (photo printer)"

Of course it did. After mailing a photo copy in:

" You have submitted two rebate requests for the same item"

The photo printer offered 3 rebates. After informing them of this:

" We have already issued this rebate to you"

They had not.

After questioning why my forth rebate request did not show up on the rebate website, received this:

" You will need to provide us with the address to which the request was sent."

and then after faxing the above to them this:

"Please resubmit all the required date for this request (receipt, proof of purchse and rebate form)"

Again in the interest of space I will not repeat the various repetitions of these messages I received from as many as 10 different anonymous responders, all denying my qualifications for the subject rebates. I counted six different requests for copies of proof of purchase and four requests for receipts.

I have learned the hard way and hope this recap may be of value to others.

Lessons learned:

First, do not buy items offering rebates without first checking the reputation of the company offering the rebate. This can often be done by searching the web entering the company name + rebate.

Second, never submit an original receipt or proof of purchase without making clear photo copies of each.

Third, I would recommend getting a returned receipt from the recipient of the mail in rebate.

Forth, maintain a file of all written and email correspondence both to from the rebate customer service.

Finally, while I recommend this only as a last resort, advise the rebate customer service an absence of response from them will cause you to contact your state Consumer Affairs Department........(this gets rapid response).

There is no question in my mind that this particular company had believed that over the course of 3 1/2 months of delaying and requesting additional backup data (which they hoped I no longer had) that I would give up the fight and forgo the rebate.

They were wrong.

I hope you will benefit from my experience.