Beware of Mail-in-Rebates (Seriously this Time)

Mail-in-rebates are a gamble no matter how you approach the situation. You can push the odds of getting a check in your favor by both following directions exactly as they're laid out and keeping a record of the entire process with photocopies of everything you send in, but no matter how careful you are, the promised check might never be in the mail. Depending on the amount, it could be worthwhile to stay persistent.

Now it appears that standard precautions may not be enough. According to HardOCP, Continental Promotions Group (CPG), one of the largest and oldest rebate entities in the business, is finding itself in dire straits and potentially unable to pay its obligations. When a manufacturer puts a rebate on a product, it anticipates a set of amount will be turned in. To cover the costs, said manufacturer will cut a check to CPG to cover the payouts, but according to HardOCP, those funds have gone inexplicably missing.

"We have it from good sources currently that CPG owes consumers somewhere in the neighborhood of $9M to $12M worth of rebates," HardOCP writes. "The problem here is that CPG currently only has about $3M in cash to cover that $9M-$12M in rebates owed to the consumer. Where that money has gone to is anyone’s guess and we will leave speculation up the law enforcement authorities and the courts."

HardOCP says CPG has been contacting its customers asking them to deposit more money into CPG accounts to cover the rebates or else it might not be able to honor consumer rebate checks. That can't sit well with manufacturers who already funded the rebates, nor will it sit well with consumers if they end up being the ones to get screwed.

What's your experience with mail-in-rebates been like? Hit the jump and let us know, good or bad.

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