Last week we reported that Continental Promotions Group (CPG), one of the largest and oldest rebate entities in the business, managed to put itself in a rather sticky situation by not having enough funds to pay off its obligations. To quickly recap, manufacturers have a pretty good idea of how many rebates on any given product will be processed and cut a check to CPG based on that amount. CPG then doles out the funds as rebate forms come trickling in, but a large chunk of money has gone inexplicably missing. According to HardOCP, CPG owes anywhere between $9 million to $12 million, but only has $3 million in cash. Oops!
No laughing matter, it's the consumers who ultimately get the raw end of the deal, but at least one company has stepped up where CPG has fallen down. In a letter to its customers , John Malley, BFG's senior director of marketing said that it has "corrected the situation" so that U.S.-based customers are clear to cash their rebate checks.
"One of our third-party rebate processing companies recently informed us that they are experiencing financial difficulties, and that the funds provided to them by BFG Technologies to pay rebate checks for certain BFG products were no longer available," Malley writes. We are happy to inform our rebate customers in the U.S. that BFG has corrected the situation, and you CAN cash your check to receive your rebate payment. This applies to all rebate checks for BFG Technologies. For Canadian customers, please hold on to your check and do not attempt to cash it. We are actively working on a solution for you and will update this message or contact you directly before the end of this week."
Malley asks that anyone who has already tried to cash a rebate check only to have it bounce or be refused by the bank to contact email@example.com so that BFG can issue a new check, one which should clear the bank.
Image Credit: BFG