This has really put a hole into my BF buying plans. Everything with a rebate will require a second look.
Sucks.
This melt down is extending into regions and arenas I did not foresee. Dollars to doughnuts, that rebate fullfiller had those funds invested unwisely and lost 'em! I'm just glad I haven't deposited any rebate checks recently. Gosh I'm lucky.
Friday, November 14, 2008 - 5:38 PM EST | Modified: Friday, November 14, 2008 - 6:13 PM Continental Promotion seeks bankruptcy protection after layoff Tampa Bay Business Journal - by Michael Hinman Just a day after it handed out pink slips to 17 employees, CPG Marketing Inc. and Continental Promotion Group Inc. of Tampa have filed for Chapter 11 bankruptcy protection Friday.
The companies both list an Eisenhower Boulevard office as their address, and both have Daniel Granger as its chief executive. Continental Promotion lists assets of between $1 million and $10 million, and liabilities in the same range from between 200 and 999 creditors. CPG Marketing listed estimated assets of $1 million to $10 million, and liabilities of between $10 million and $50 million, with up to 50 creditors.
Continental Promotion told Florida Agency for Workforce Innovation Thursday it would lay off 17 people by Nov. 19. It’s unclear how many employees Continental and CPG had, and a call to the company’s media contact, Amy Harich, was pending return Friday.
Continental Promotion touts itself on its Web site as a promotional management services provider, interacting with more than 30 million consumers annually through manufacturer- and retailer-driven promotions, according to press releases from the company.
Last May, Continental Promotion said it won a preliminary injunction from a U.S. District Court in Arizona enforcing a non-compete clause of Samuel Garvin that restricted him from competing with Continental Promotion or solicit the firm’s customers or employees for three years following his sale of Continental Promotion to CPG in 2005. The non-compete, according to a press release by Continental Promotion, prohibited Garvin from processing and fulfilling rebates, gift cards and other promotional items, among other activities through two companies known as Garvin Promotion Group LLC and Giftcard Loyalty Reward Solutions LLC.
Continental Promotion claims more than 500 national and international clients in 120 countries with offices in Tampa; Tempe, Ariz.; Toronto; and Tipperary, Ireland.
The breakdown on this is somewhat straightforward:
PAST rebates, even those where you already have a check in hand, are obviously in deep sh!t. Cashing the check might be a very bad idea, without checking first with the manufacturer or seller.
But the future also is a worry, especially the near term future and that means BF. The manufacturers and sellers are bailing out as quickly as they can and seeking new service provider partners to handle their rebates. But these things take time to accomplish!! Thus, with BF so close and with it being so important to all sides, there might not be time to change rebate fulfillment arrangements set into place earlier.
$%&#@! I've been sitting on a $25 rebate check from them for about a week. It was for a Rx that I tried and can't even use b/c it gave me acne. I was so happy to have gotten my money back for the ugly it had inflicted upon my face and now this.
Thanks for posting and preventing a bounced check fee.
CoffeeEater
Greedy Member
posted: Nov. 15, 2008 @ 3:33p
beethovengirl said: $%&#@! I've been sitting on a $25 rebate check from them for about a week. It was for a Rx that I tried and can't even use b/c it gave me acne. I was so happy to have gotten my money back for the ugly it had inflicted upon my face and now this.
Thanks for posting and preventing a bounced check fee.
SVTour98 said: Crap. There goes my $50 rebate for my Fujitsu Scanner...
Naaa you're probably OK and I apologize for any misunderstanding my OP might have caused.
The real danger in this is if you deposit a worthless check. That IS bad and can lead to even worse outcomes, like if you write checks against a checking account balance you think is accurate, but it is not. You could encounter multiple NSF fees and there's no guarantee they would be reimbursed.
On the rebates themselves:
Check with the issuing MANUFACTURER or the issuing SELLER. This as opposed to checking with the fulfillment house. You need to learn if your rebate is impacted. If it is, you need to learn how to recover from this circumstance and retrieve your money, your rebate. The manufacturers and sellers are also victims in this. But they almost certainly will want to make good on their rebate promises regardless.
So bottom line:
Do not deposit rebate checks until you can confirm they are good and will be paid. Depositing a bad check, which later is returned, could mean a fee for you.
If you recently have deposited rebate checks, do not write checks against those funds until you have ascertained with certainty the rebate money really will be there, in your checking account, for good.
Remember, you most likely will NOT lose your rebate. However, you will have to work harder than you expected to work to obtain it. There will be unanticipated "legwork".
And finally, beware bank fees which easily can be larger than some rebates. That's were the real peril lies in this situation.
Good luck to all and be careful out there. This financial melt down is real, and it is tough trying to anticipate what's gonna melt next.
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.
The question is can the manufacturers stay in business as well..
A $15-30 rebate on a $1000 item will have a low chance of failing.
The FAR items from smaller companies are more in doubt..
Rorer714
Senior Member
posted: Nov. 15, 2008 @ 4:54p
From SD:
http://www.usa.canon.com/consumer...ebate_info Important Rebate Info
November 14, 2008.
Dear Valued Customer,
This is an official message from Canon U.S.A., Inc.
The third party rebate processing company that was responsible for processing rebate claims and issuing mail-in-rebate checks for Canon-brand printer and video products (along with many other products of a number of other companies) filed a Chapter 11 Bankruptcy petition earlier today. The funds provided to them by Canon U.S.A., Inc. (and other companies) apparently are no longer available to satisfy the rebate checks such company issued on behalf of Canon and other companies. Regrettably, as a result, you should not cash the refund check you recently received for such products, as it likely will bounce. We apologize for any inconvenience, delay or confusion this may cause. We are doing everything in our power to promptly rectify the situation.
Accordingly, we request that you take the following actions:
If you are holding or receive a rebate check for printer or video products which is dated on or before November 14, 2008, please do not cash the check, as it may bounce. Please look for updated postings on the Canon U.S.A. website on or about November 18, 2008 for further instruction on how to exchange your check for a new check that you will be able to cash. If you have not yet mailed in your rebate claim materials, please hold such materials until you receive further instruction. We are making new processing arrangements, with a new mail in address. Please look for updated postings on the Canon U.S.A. website on or about November 18, 2008 for further instruction on where to mail your rebate claim material and how to exchange your check for a new check that you will be able to cash. Check our web site early next week for further instructions and contact information for any questions you may have. Again, please do not cash any rebate checks for printer or video products which are dated on or before November 14, 2008, as they may bounce.
We are committed to ensuring that you receive your refund as soon as possible and that you will continue to have full confidence in Canon U.S.A., Inc.
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
lineman
Member
posted: Nov. 15, 2008 @ 7:07p
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
andoelonis
Member
posted: Nov. 15, 2008 @ 7:23p
This is amazing in a sad, sad despicable way! This will cause a huge black-eye for the retail industry.
andoelonis
Member
posted: Nov. 15, 2008 @ 7:32p
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.
andoelonis
Member
posted: Nov. 15, 2008 @ 7:45p
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
haloseven
Senior Member
posted: Nov. 15, 2008 @ 11:13p
anyone with parago fulfillment issues, lmk.im going to throw rocks at their building tomorrow.
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!
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.
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.
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.
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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