In from ScamBusters:

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Inside the Murky World of Rebate Scams
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The business of refunding money to customers – whether it’s a
check from the IRS, a payback for something you bought or a
job processing the payments themselves – is a magnet for the
criminal or disreputable practices we call rebate scams.

We’ve dealt extensively with tax rebate scams (and more
general IRS tax scams) in past articles, so this week we’re
concentrating on the other two types of rebate scams –
refunds for purchases and phony work-at-home processing jobs.

http://www.scambusters.org/taxscams.html

http://www.scambusters.org/irsscams.html

By now, we’re all familiar with both of these “come-ons”:

  • It’s rare to see a store advertisement – especially in the
    electronics field – that doesn’t offer super bargain prices,
    provided you successfully claim a rebate, often mentioned only
    in the small print.

  • And the Internet – both through online ads and spam emails
    – is teeming with supposed lucrative opportunities to earn
    thousands of dollars a week processing rebate claims. They
    imply these are the very same rebates the stores are offering.
    But it’s a lie…

Rebate scam #1: A maze of tricks and hurdles to fool you

Wow, what a bargain! You see that computer program or piece of
equipment you want for just a fraction of the price you
thought you’d have to pay.

But, hold on. On closer inspection, the ad says something like
“after rebate.” So you have to pay the full price, complete a
rebate form and only then will you make your savings – if
you’re lucky.

In fact, manufacturers and retailers offer to pay back an
estimated $4 billion a year to customers this way. But what
they don’t tell you is that hundreds of millions of that
amount – perhaps up to 40% of it – is never paid.

Why?

Because some of them have used every trick in the book, from
simply ignoring the rebate claims to making it darn near
impossible to qualify. Several big names on Main Street and
the Internet have been scolded or even punished by the Federal
Trade Commission for doing this.

But rebates are such a clever marketing tool that they’re too
attractive a deal for manufacturers, retailers and even
buyers to ignore. That’s why they’ve quadrupled in notional
value in the past 8 years.

Of course, it’s true to say that most rebate schemes are
legitimate. And in many cases (more so with manufacturers than
with retailers) they operate fairly and do pay out.

But, when you think about, the underlying idea is to avoid
paying at least some of the purchasers.

Here’s a simple case: You must have seen ads advertising a
product as “free after rebate.” Well, if everyone got their
rebate, there’d be nothing for the manufacturer or the store,
would there? They’d lose out – and that’s not usually the plan.

They count on customers either not claiming or disqualifying
themselves from getting the rebate. There are lots of ways
this happens. For example:

  • The rebate form is not easily accessible – it may be posted
    separately or obscurely online for just a few days – or you
    may lose it.

  • You simply forget to complete it and/or mail it.

  • You make a mistake when completing it. Some tricksters have
    been known to insist a certain color ink or block capitals
    must be used. Others insist you circle the price on the
    accompanying receipt. Miss these and you could be sunk.

  • You have to provide a bar code from the box – but you
    already threw it in the trash. Even worse, they ask you to
    provide a bar code from a previous product you bought years
    ago.

  • You miss the deadline for submitting your claim. Sometimes
    rebate offers seem to be open for months but the small print
    says you must submit your claim within a very tight time frame.

  • The check they send you must be banked by a certain date.
    Miss that date and the check is void. You have no comeback.

  • The offer may involve filling in multiple rebate forms –
    three is not unusual – all requiring different bits of
    evidence. A tiresome process aimed at putting you off.

  • The offer imposes some sort of restriction on who can claim
    – such as insisting that you must have bought the product
    from a particular retailer and have not claimed a previous
    rebate.

  • The rebate processor simply doesn’t pay unless and until you
    chase them for payment. Sometimes they don’t pay at all,
    saying they didn’t receive your claim and refusing to accept
    copies as evidence.

These obstacles vary in terms of whether or not they are truly
scams. Some are clearly perfectly lawful. And we recognize
that companies need to put limits on rebates. However, when
companies offer rebates as lure with no intention of paying
out, then they are rebate scams.

With all these pitfalls, many people may think it’s not worth
buying on the basis of getting a rebate. And they may be
right. But there are plenty of people who do use them and do
get their money.

Here are 8 simple tips to follow to reduce the risk of falling
victim to rebate scams:

  • Make sure you get the rebate form. At a store, it should
    come with the receipt or be in the box; otherwise, ask for it.
    If you’re purchasing online, make sure you download and print
    the rebate when you buy.

  • Read the small print to make sure you qualify. If the deal
    is online, you can often download and print the form before
    buying.

  • Make a note of any dates: When the form must be submitted,
    how long the claim takes to process (note this on your
    calendar), the date you mail it.

  • Don’t throw away any packaging until you’ve completed the
    form and ensure you follow all the rules, including enclosing
    requested items. Copy and file each one.

  • If the rebate is substantial, consider buying delivery
    confirmation with your mailing.

  • You may be able to track your claim online. You can find out
    who is processing the rebate here.

http://www.myrebates.com

http://www.rebatestatus.com

  • If payment doesn’t arrive, contact the rebate processor
    (usually a separate company from the manufacturer or people
    you bought from). Their number will be on your copy of the
    claim form.

  • If payment still doesn’t arrive, file a complaint with the
    FTC and your state Attorney General.

http://www.ftc.gov

Rebate scam #2: Become a claim processor. Or not.

You’ve seen the ads. Now learn the lie. We believe
work-at-home rebate processing jobs are scams. Period.

It’s true that manufacturers and retailers who offer rebates
to their customers use third party firms to process the
claims.

Here’s how it works: You make the claim and send it to the
processor; the processor approves it or not and notifies the
original rebate offerer, who then either sends you the money
direct or sends it to the processor to forward to you.

But we can find no example of any of the major processors
employing people at home to do this work for them. In the
main, they are huge operations staffed by full-time, trained
and experienced clerks (the ones who know how, when necessary,
to disqualify your claim!).

The ads you see offering rebate processing work-at-home jobs
imply this is what you’ll be doing and they often charge a
hefty fee (usually about $200) for “training.” But what
they’re really selling is, well, selling.

When you’ve paid, you get a guide telling you how to set
yourself up as an affiliate or agent for products being sold
on the Internet. Then, you’re supposed to offer a rebate for
these products to encourage people to buy through you.

Here’s the first catch:

The purchase payment goes to the actual retailer, not you, but
you have to pay the rebate and then wait for your commission.

For example, you offer a product for $40 with a $10 rebate
using a certain code. The customer goes to the actual seller’s
site, pays $40 but keys in your code to get the rebate. The
seller sends the information to you and you send the customer
their 10 bucks.

So far, you’re $10 out. The seller than pays you a commission,
which, hopefully, is more than that $10!

This all might work in theory except for one expensive
problem: How do you let people know about you and your rebate
offer? Answer: advertise it. And that usually costs money.

At the end of this process, it’s easy to see how most people
who fall for these rebate scams finish up out of pocket. In
truth, very few manage to sell anything.

The Internet is full of blogs and other websites full of tales
of woe from people who’ve fallen for the trick.

To make things worse, some of these very same sites, while
purporting to highlight rebate scams, then go on to offer
their readers a technique that “really works.” But it’s just a
variation of the same trick.

Strictly speaking, these scheme promoters are usually not
breaking the law. If you do what they say and if it works
(highly unlikely!) you will actually be processing rebates!
But, it’s highly misleading.

There are many more work-at-home scams. We highlighted the
biggest ones in these articles.

http://www.scambusters.org/work-at-home.html

http://www.scambusters.org/work-at-home-jobs.html

http://www.scambusters.org/work-at-home2.html

There are also plenty of legitimate programs – things that
really work. But the bottom line, even for the legit programs,
is that none of them will make an easy fortune for you. So
stay clear of the ones that make promises that are too good to
be true.

That’s all we have for today, but we’ll be back next week with
another issue. See you then!

I grew up in a day where honesty was important, and a handshake was a man’s word.
A place where you shoveled snow off your neighbor’s walk and driveway (why?) just because they were your neighbor. You weren’t late for a wedding, funeral, church, work, or to go fly fishing. You stopped for a person at the side of the road because they needed help and they were your brother/sister. It was always the right thing to do. Businesses, utility companies, etc were honest. Politeness on the streams were always shown (fly fishing, a gentleman’s sport; I still will give a fellow fly fisherman/woman a fly pattern that is working). As a kid, and a minister’s son, the worst thing I could ever do was to lie (to be dishonest). I had honesty branded into my hide with a belt. To this day, it makes me intolerent (I really go ballistic) of those who would be dishonest. Where I live, you can’t trust anyone. I have learned one important thing. There are only two people you can really trust; yourself, & God !!! DO this, and you won’t go wrong. Thanks LadyFisher for sharing and opening everyone’s eyes to the dishonesty that is out there. I even pray to God that one of these days we will have an honest government. Till then, I miss the good old days !!!

I always tell the store manager or salesperson - I will purchase the model without the mail-in-non-rebate. I already have too many checks in the mail!

And if I see too many of these rip offs I will be shopping elsewhere.

I can say this honestly I have never been ripped off on a rebate. Now it cost’s me a little more but I always send them return receipt, and it seems when they have to sign for them they can’t use that excuse.

Always make a copy of everything, and even better use a digital camera and have your photo show that you completed every step in their rebate process.

Fatman

About 7 years ago I bought a new Wilderness Systems kayak and mailed in the form for the maker’s rebate.

A couple of months went by with no check. I sent an email to WS on their website. No response. I went back to the dealer, an old friend, and told him. He called WS and presto, like magic, the check quickly appeared.

I wouldn’t do a mail-in rebate again, and my opinion of Wilderness Systems has been diminished by the experience.