Rebate Company Not Paying
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Posted: 8:08 PM Dec 17, 2008
Rebate Company Not Paying
Customers left waiting, business caught in the middle
A metro business is caught in the middle between its customers and a rebate company not coming through with what was promised.
Reporter: Mike McKnight
Email Address: sixonline@wowt.com
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A metro business is caught in the middle between its customers and a rebate company not coming through with what was promised.

Six On Your Side recently reported that retailers actually contract out rebates to another company. Nextar, famous for its navigation devices, hired a company that went out of business. It's happened again and now a local business finds itself stuck.

Amy Daniel and Stephanie Luetkenhaus paid about $1,500 for their treadmills. Daniel exercised her option on collecting the rebate that came with a treadmill.

"It was what brought us into the store is thinking that we would get the $1,100 back eventually." But customers had to follow pages of fine print rules, then wait three years to collect the rebate.

“Who is going to remember paperwork in three years?" says Luetkenhaus. "Unfortunately or fortunately, we remembered and now we're out."

Detailed voucher requests sent to Cashback America are being returned to sender. "What do I do now?"

The owner of Nova Fitness Equipment paid $44,000 into the program, but he's been unable to contact the Florida rebate company. "The money which I paid in, I have no way of seeing those rebates sent to my customers to make them happy customers," says owner Howard Kutler.

Kutler and about 20 customers have run out of patience trying to contact the rebate company in Orlando.

The Florida attorney general reports 1,431 complaints against rebate provider Cashback America. One filed by Kutler says his 23-year business reputation needs to remain strong, so he'll pay part of the customer rebates.

"I feel that's the right thing to do, for me to make cash settlements with my customers."

Daniel commends Nova for stepping up and she says her frustration rate is coming down with the promise of at least a partial return on her rebate with proper documentation.

"I doubt either of us would have spent that much money on a treadmill if we wouldn't have thought we'd get something back."

The Florida attorney general is investigating Cashback America for misrepresenting to merchants the amount of money available to cover rebates. Six On Your Side has been unable to reach the company or its owners.


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