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Rebates in Jeopardy as Third Party Fulfiller Loses Money Archived From: Finance

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Also for PriceGrabber:

Important News About Your PriceGrabber Rebate

Dear XXXXX,

PriceGrabber.com wants to thank you for being a loyal customer, and also say thank you for participating in our review rebate program.

We wanted to give you an update on a recent change in our rebate process that has occurred over the past few days. We have been informed that the vendor who supplies the rebates to PriceGrabber customers who have filled out a review on our site is unfortunately no longer able to process rebate requests from our customers. Although PriceGrabber has prepaid this vendor a substantial amount to more than adequately fund our review rebate program, they have informed us that they do not intend to honor checks they have previously issued to our customers.

If you are currently in possession of a rebate check issued on behalf of PriceGrabber.com, or if you receive a check of this kind within the next week, PLEASE DO NOT CASH IT. The vendor is placing stop-payments on these checks to prevent you from being penalized, but we still hope to prevent you this additional inconvenience. PriceGrabber is in the process of reissuing your rebate check directly from our own accounts. A new check to be mailed to you directly from PriceGrabber headquarters in Los Angeles, CA. No additional action will be required from you to initiate this process.

We apologize for any inconvenience this may cause you, and we appreciate you taking the time out of your busy schedule to participate in both of our programs. Your feedback is very valuable to us, and we want to ensure you receive your rebate as promised. Rest assured that PriceGrabber is also taking all appropriate actions to ensure this type of problem does not occur again.

If you have any questions or concerns, please feel free to email us at rebates@pricegrabber.com

Again, thank you for your time and understanding.

Best regards,


Darren Davis
VP, Product Marketing
PriceGrabber.com


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I also received the same email from COSTCO regarding their rebates.


This communication contains important information regarding the redemption of Costco Mail-in Rebate checks dated prior to November 13, 2008.

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

Mail-in rebate checks dated after November 13, 2008, are not affected by this business disruption and may be deposited or cashed at your bank, or redeemed at any Costco warehouse.

If redeeming your check at a Costco warehouse is inconvenient, you may mail the original check to:


For U.S. Costco Members:

Costco Wholesale
c/o APF
PO Box 1015-A
Grand Rapids, MN 55745

For Canadian Costco Members:

Costco Wholesale
c/o APF
PO Box 10668-A
Thunder Bay, ON P7B 6V1

 

A replacement check will be issued promptly upon receipt of the original check. Please retain a copy of the original check for your records.

If you have already deposited a mail-in rebate check dated prior to November 13, 2008, it may be returned to you by your bank. If so, please bring your returned check and proof of any associated bank fee to your local Costco warehouse for full reimbursement.

If redeeming a returned check at a Costco warehouse is not convenient, you can mail the returned check and the notice of bank fees to the address above for full reimbursement.

Costco Wholesale sincerely apologizes for any inconvenience that this unfortunate situation may have caused.

Please do not reply to this email. If you have any questions, please contact our Call Center at 1-866-355-3137.
Lineman


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This is amazing in a sad, sad despicable way! This will cause a huge black-eye for the retail industry.


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omarECD said:Manufacturers are still legally liable to consumers for the rebates. There is a contract between the consumer and manufacturer, and a separate contract between the manufacturer and rebate processor. Thus, the manufacturers are the ones getting screwed by this rebate processor.

It just may take longer to your receive your rebate as the companies switch rebate processors.

There will be no more rebate processors. This is the first of many, the industry is dead.


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wikipedia.org said:Although the firm is private, public records show the firm employs about 340 employees in the Dallas-area office and another 1000 call center employees throughout the world. The firm has experienced significant growth and expansion in the early 2000s and is similar is size and structure to Tempe, Arizona-based Continental Promotions Group.

Over the past year, a number of senior executives have left the firm including the CEO and the head of the loyalty division.
In addition, a recent article in BusinessWeek Magazine reported of widespread consumer discontent with rebate programs and rebate processors. The story was very critical of the level of customer service and the fulfillment processing methods of all rebate companies in general and Parago specifically. Parago is frequently mentioned negatively at consumer protection sites such as Fatwallet.com and gripe2ed.com.

Chilling


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anyone with parago fulfillment issues, lmk.im going to throw rocks at their building tomorrow.


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Circuit City rebate + rebatestatus = double whammy


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andoelonis said:wikipedia.org said:Although the firm is private, public records show the firm employs about 340 employees in the Dallas-area office and another 1000 call center employees throughout the world. The firm has experienced significant growth and expansion in the early 2000s and is similar is size and structure to Tempe, Arizona-based Continental Promotions Group.

Over the past year, a number of senior executives have left the firm including the CEO and the head of the loyalty division.
In addition, a recent article in BusinessWeek Magazine reported of widespread consumer discontent with rebate programs and rebate processors. The story was very critical of the level of customer service and the fulfillment processing methods of all rebate companies in general and Parago specifically. Parago is frequently mentioned negatively at consumer protection sites such as Fatwallet.com and gripe2ed.com.


Chilling

I have a different take, at least for now:

I'm not prepared to condemn an entire industry as a result of the idiotic behavior and poor judgment of just one participant in that industry, CPG. I have benefited very well from rebates in the past. Also, I take note the manufacturers and sellers, many at least, want to put this right. They are victims to a greater extent even than ourselves, yet they are trying to do the right thing. I, for one, am inclined to give them time and cut them some slack.

The piggish jackasses at CPG almost certainly tried to fatten their take by putting our rebate money into (what now are recognized as) toxic investments. They paid the price they deserved to pay and I have only contempt for them. But, again, they are not Parago and they are not other fulfillment houses. They are CPG.

My largest concern in this matter, bank fees, I explained a few posts back. Going forward to BF and beyond into the Xmas selling season, I have some residual worry as to whether the sellers and manufacturers will have TIME to rejigger their rebate fulfillment arrangements. Time is very short and they must accomplish two objectives:

*They need fully and completely to extinguish any arrangements they might have had with CPG and to make their rebate fulfillment connections for the future with another fulfillment provider.

But equally important, and prior to doing the above:

*They must investigate the financial soundness and investment practices of any fulfillment house with which they might contemplate doing business.

Doing these things will take TIME, and hence my concern.

But bottom line, this failure by CPG management has not changed the viability of the rebate itself, as a way of doing business. Rebates have existed for a long time because they work for the sellers and they work for us, too. Those of us with the energy and wisdom to claim our rebates, that is!


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I suspect the CPG rebate funds were required to be held in escrow. If so, I wouldn't mind seeing whoever was involved in diverting the money spend some time behind bars.


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binaryinfo said:My comcast $150 promotion rebate is being processed by rebatestatus.com. And my citi $50 credit protector!
S*!

I think you're talking about rebates from broadbandoffers? The website to check their rebates is checkmyrebate.com. Is this the same company?

I just deposited my 3 rebate checks from them on Fri. 11/7. I hope everything went well.

Edit: I saw that there's another company called broadband national that uses rebatestatus.com


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goku2 said:there goes my $50 from citibank for having their crap credit protector.

Isn't the credit protector done by Helix Global Solutions? At least that's where I check the status on my $10 checks.


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Wchau81 said:goku2 said:there goes my $50 from citibank for having their crap credit protector.

Isn't the credit protector done by Helix Global Solutions? At least that's where I check the status on my $10 checks.

Now it is for the visa giftcard, but previous offer like WalMart/Sears/Home Depot $10 GC was handles by CPG.


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From Logitech...

Brief Summary
---------------------------------------------------------------
What is happening with the rebates????


Discussion Thread
---------------------------------------------------------------
Response (Eugene) - 11/17/2008 01:35 AM
Dear xxxxxx,

Thank you for your e-mail. My name is Eugene and I will be assisting you with
your issues regarding case number xxxxxx-xxxxxx.

With regards to your issue, Logitech is aware of this issue. We are currently
working very closely with the relevant parties to sort this issue out. As for
now, if you have received a check, do not bank it in first as it will only
bounce.

I am not sure when will they come up with a conclusion. What I will do is to
keep your mail in my mailbox and set it to pending. In this case, your issue
will not be discarded. When I receive a feedback I will notify you immediately.

I apologize for the inconvenience caused.

Thank you for using Logitech. Have a great day ahead, xxxxxx.


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During the Great Depression, MIR providers on bread and soup bent belly up.

Just a little bit of history repeating.


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dairymtu said:Wchau81 said:goku2 said:there goes my $50 from citibank for having their crap credit protector.

Isn't the credit protector done by Helix Global Solutions? At least that's where I check the status on my $10 checks.


Now it is for the visa giftcard, but previous offer like WalMart/Sears/Home Depot $10 GC was handles by CPG.

Their latest 5x$10 MasterCard offer goes through CPG also.


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I propose holding Alex Trebeck personally responsible.


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lookingdeals said:Circuit City rebate + rebatestatus = double whammy

???

Circuit City rebates are fulfilled by parago. If you had a rebatestatus rebate from something you bought at Circuit City, it's a manufacturer's rebate.


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kamalktk said:I propose holding Alex Trebeck personally responsible.

That would be Double Jeopardy!


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SilverB18C1 said:dairymtu said:Wchau81 said:goku2 said:there goes my $50 from citibank for having their crap credit protector.

Isn't the credit protector done by Helix Global Solutions? At least that's where I check the status on my $10 checks.


Now it is for the visa giftcard, but previous offer like WalMart/Sears/Home Depot $10 GC was handles by CPG.


Their latest 5x$10 MasterCard offer goes through CPG also.

But I thought it was Helix Global Solutions as said above. The address for Helix is Miami, and CPG is Phoenix. I may be wrong here, not sure.


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ricrick said:From Logitech...
...
Thank you for using Logitech. Have a great day ahead, xxxxxx.


More info from logitech here. They say that all rebate checks should clear.

Quoted below for posterity:
logitech said:Note About Mail-In Rebates

Recently, Logitech learned that one of our business partners for issuing mail-in rebate checks in the United States and Canada has encountered financial difficulties. The good news is that we are working to minimize any inconvenience to you:

* If you have a mail-in rebate check for a Logitech product, you should be able to deposit it without any issues.
* If you are waiting for a mail-in rebate check for a Logitech product, it should arrive on time or be delayed by a week at the most.
* If you are about to apply for a mail-in rebate for a Logitech product, go ahead and do so – the process does not change. You can use the address you have now or it might be slightly faster to use this new address:

Logitech Rebates
P.O. Box 540004
Dept. #: (use the same dept number as on the rebate coupon/PDF form)
El Paso, TX 88554-0004


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