**WARNING** Costco rebate checks, others

If you purchased anything from Costco stores that entitled you to a rebate, do not deposit the rebate checks in your bank account! They will bounce!

Costco.com (PDF file)

Due to a significant business disruption at the company that processes Costco Wholesale's Mail-in Rebates, no rebate checks dated prior to November 13th, 2008, should be deposited into your bank account. These checks should be redeemed at your local Costco warehouse.

It appears this is stemming from the bankruptcy filed today of rebate processor Continental Promotion Group.

The company's website doesn't list specific clients, but some research on the internets indicate that other companies at risk of bounced rebate checks appear to include:
Cingular/AT&T
Canon
Tiger Direct
Fry's Electronics
Staples
Logitech
Kensington
Hewlett Packard
Crucial
AVG
Nero
Panda AV
Smith Micro/Allume
Advance Auto Parts
Dell
Lowe's
Amazon
Sharp Electronics
Home Depot
Gateway
eMachines
Kragen Auto Parts
Tom Tom

Sources: Ripoffreport, Hardware Enthusiast, Consumeraffairs.com, Yahoo, BBB

There are most certainly countless other companies, large and small, that deal with this company and, as such, will have rebate checks bouncing.
If you have any rebate checks on hand, contact the original merchant to verify that they don't use CPG. Bounced checks deposited into your account will incur fees, and not all retailers will be as accommodating as Costco to rebate any fees you may get hit with!

Rebate checks are a scam, anyway. I don't buy anything that depends on 'rebate checks' to deliver the advertised price. There are many reports of rebates never arriving, plus the fact that if they have to depend on trickery which collects marketing data to compete, I don't want encourage that. Just sell a decent product at an appropriate price, thank you.

'Rebates' are dishonest.

Found a another source too, great work!

enthusiast.hardocp.com

-R3K

Doesn't surprise me to see Home Depot on that list...I was just in to work today and there was an ominous notice posted regarding regional Canadian hours having to be earned. each store, based on sales figures (per region not store specific) is allotted a certain number of hours. Apparently things have started going south in a big way and there is now a crunch on available hours.

The hardest hit employees with be Part time hourly associates. It's anticipated to get much worse in the next few months and even the "Christmas shopping season" isn't forecast to be good enough to save people's jobs.

Overall the effect for customers and employees of these companies is going to be very noticeable.

Most of these companies also get "branded" store credit through the soon to be belly up CitiFinancial.

This quarter Home Depot (my store) got a huge chunk of profit shares to be disbursed between employees totaling 135000+- so at least we got that before the crash started.

It's grim overall. Not being able to cash a rebate check is a really bad sign. Are they honoring the rebate checks for cash or are they limiting it to merchandise (gift cards or such)...

Some of these big chains...I wouldn't put it past them to offer merchandise rather than cash if they can do.

Thanks for catching this. I just received my Costco rebate check today and will redeem at the store.

Originally posted by justgeneric
Are they honoring the rebate checks for cash or are they limiting it to merchandise (gift cards or such)...

Some of these big chains...I wouldn't put it past them to offer merchandise rather than cash if they can do.

Costco is cashing the rebate checks. Since they pay the rebate centers up front, they're taking a loss on it - at least for the time being. If they can recover anything from the rebate company they will, but it appears CPG has no cash. I doubt Costco or other affected retailers will get much, if any, of their money back.

TRENDnet looks to be taking a loss too; they're trying to switch to another rebate center to handle the checks. That means they'll have to pay the new rebate center up front.

I don't know what any other retailers will do; I haven't been able to find any statements from others.

I just saw this...seems some companies are offering "perks" for converting the rebate checks (economic stimulus checks) to merchandise cards (gift cards).

It's a pretty telling cash grab, and they don't lose much in converting cash to merchandise seeing as most of the stock is pre-purchased and purchased wholesale. Cost are involved mainly in warehousing the stock and employee wages.

Cash a rebate check for less than the face value but offer a "perk" or a store merchandise card or coupon.


source

Both Kroger Co., one of the country's largest grocers, and department store operator Sears Holdings Corp. are already offering discounts and freebies to consumers who turn the rebate checks into gift cards. Other retailers like Home Depot Inc. are launching advertising campaigns to helpfully suggest ways to spend those extra dollars.

I also noticed that the rules with appliance rebates have been tightened. 90 days if not cashed it is null and void. That is from the date of purchase not from the date of them actually processing the rebate LMAO. Nice trick seeing as we all know how long it takes to process...6-8 weeks sometimes 12 weeks, then it still has to be mailed.

All of the troubles these major chains are starting to experience and will experience more in the near future, will fall on the employees.

From my Home Depot...hours are always the first to be slashed to reduce costs. It's going to get messy for the hourly workers.

Thanks again for the catch on this story

Are you kidding me??? It says right on the check, only for use at Costco. Sometimes I wonder what people are really thinking, oh wait, they aren't!