Rebates For Better or Worse

While most Gripe Line readers seem to share my dislike of rebates, there are those who actually seem to enjoy chasing down their wayward rebate checks. Even when they do encounter a deadbeat rebate, such readers always seem to find a silver lining.

“Have you been getting complaints about rebate programs getting worse?” one reader wrote. “I frequently buy software with rebate offers and I’m generally quite particular about meeting deadlines, clipping UPCs and the like. Recently, I’ve received a spate of rejections, including ones claiming that I failed to include a UPC, which I know I included. Offending companies have included iolo (System Mechanic), Nuance (Naturally Speaking), Ahead (Nero) and Corel (Paint Shop Pro Photo). It just seems as though the rebate houses are working to raise their rejection rate. Even if you do save your documentation, how many people are going to run off another copy, and send another letter in the faint hope of collecting their $20 – $50 rebate? And what’s the downside for the rebate house? There’s no penalty; they just have to send out the check that they should have sent out in response to the initial submission. The only real recourse that I see is to complain to the software publishers themselves. I should add that there are vendors with whom I have never had any trouble whatsoever — Microsoft, Adobe and Kingston come to mind.”

Another reader provided a window into the seamier side of the rebate business when he had trouble getting a $32 rebate from Gigafast. OnRebate.com, itself the source of many rebate gripes we’ve heard in the past, sent him a message explaining all Gigafast’s fault:

“We regret to inform you that the above rebate claim has not been funded by the sponsoring manufacturer, Gigafast Inc., and therefore cannot be paid. Gigafast Inc. contracted with OnRebate.com Inc. to have OnRebate.com Inc. process Gigafast Inc. sponsored rebates but, in violation of the terms of this contract, Gigafast Inc. has not funded disbursements for several months and has not responded to our many funding requests or other attempts to reach them. As a result rebate disbursements to customers who purchased Gigafast Inc. products have not been made. At this point your rebate claim is being cancelled but your rebate details will be kept on file in the event that you are able to contact Gigafast, Inc. and get them to fund your claim.

“Unfortunately Onrebate.com has no further information available at this time. If you have any questions regarding the non-funding of your rebate claim please direct them to Gigafast Inc. … We apologize for this regrettable situation. OnRebate.com Inc. has tried repeatedly over the course of several weeks to secure funding for your rebate claim. We’ve done everything reasonably possible on your behalf but have not gotten a response.”

Well, that beats having the rebate house pretend you forgot to send the receipt or whatever when the manufacturer doesn’t give them the money. A few weeks later the reader updated me that while he never could get Gigafast, the reseller did. “Just wanted to let you know that after all the frustration surrounding Gigafast’s refusal to honor the rebate, the Gigafast distributor — Micro Center — from whom I purchased the product – has chosen to step up and directly fund the rebates (I’ll bet that this is coming directly out of their own pockets for the sake of customer service). Not something you see every day from your average retailer! I hope that you will pass along this good news as it is much easier these days for a company to cut-and-run from a situation like this than to stand up and do the right thing by the customer. I know where my $32 check will get spent … at Micro Center as soon as I receive it.”

Even when it takes years to get a bad rebate straightened out, readers may find it praiseworthy. “While I generally agree that rebates should be unceremoniously dumped, I have to report that I’ve ever only had one rebate that I’ve not gotten back,” a third reader wrote. “A little less than three years ago, we switched from ATT Global dial-up to ATT Worldnet DSL service. The underlying DSL service in our area is provided by Covad. Part of the deal was that the exorbitant $149 charge for the DSL modem would be rebated for new customers. Since I’ve never had a rebate refused, I went ahead with the deal. After several months with no rebate check, I sent a query about the status of my rebate and received a response that a check had been cut to a person with my name, but with an address in Scottsdale, AZ. Rather than Scottsdale, I live in Denver. Even though I figured it should be easy for them to figure out the mistake, I broke my own rebate rules and decided to let it go.”

“Fast forward to February, 2007,” the reader continues. “I received a letter from Covad indicating that their records show that a rebate check had been cut but not cashed. Included was a form for me to complete indicating that I understood that the previous check would be null and void and they would cut me a new check. I promptly sent this in. Needless to say I was stunned. I was so impressed that at least ONE company would have a ‘rebate reconciliation’ department that I felt they deserved a big kudo for this. I’d hope you see fit to acknowledge this in the Gripe Line as I think that we can’t stop bad behavior only by highlighting abuses, but also by congratulating the good.”

OK. But I’m not sure that even rebate reconciliation departments are going to reconcile to whole idea of dealing with all that paperwork in the hopes of getting a check in four to six months. How about you? Are you one of those who takes pride in saving money via rebates, or do you wish they would just outlaw rebates entirely. Tell us your thoughts on the Gripe Line voice mail at 1 888 875-7916 or write me at Foster@gripe2ed.com.

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