Las Vegas NowRebate Checks Bouncing After Company Goes Bankrupt

Rebate Checks Bouncing After Company Goes Bankrupt

Shoppers hoping to save some money in this economy may end up paying a huge price. A company that handles rebates for some big names has gone bankrupt and now consumers are feeling the fallout.

Not only are the rebate checks bouncing, shoppers are also getting slammed with bank fees.

Costco is just one retailer that's dealing with this now bankrupt business. Shoppers and corporations that dealt with this third-party rebate operation are now caught in the crossfire.

Continental Promotion Group looks like a thriving place in their online promotional video. Rebate checks seem to be flying off the printer and a company slogan says "It's more than a rebate, it's a relationship."

Many consumers are discussing the issue and sharing their experiences

But now some relationships have gone bad because CPG has filed for Chapter 11 bankruptcy. The end result is thousands of deal-seeking rebate holders who studied the ads and went after the bargains may not get all their entitled money.

"This is something in our economic climate that we have to deal with. It's unfortunate," said Commissioner James Campos with the Nevada Consumer Affairs Division.

Campos has important advice for anyone holding on to a check from this beleaguered business, "Please don't go and cash the check if you know the company has filed for Chapter 11. Sometimes people believe there's a pool of money that still exists for rebates and so forth. There's not."

This reporter unknowingly cashed what turned out to be a $20 hot check. The rebate check was supposed to be an incentive for buying a Motorola modem. The check was bad and the bank charged a $12 stop payment fee.

Eyewitness News has learned Motorola is just a handful of other companies, now victims too, that did business with CPG. Bed, Bath and Beyond, Costco, Home Depot and Samsung are just some of the big names that surface.

No one from CPG responded to a request for an interview, but in a previously issued statement the company said, "Unfortunately, CPG is not immune to the economic problems facing many companies across all industries during these unprecedented times."

Their motto at CPG is "Fulfilling the promise of the brand." But with bounced checks arriving in the mail, many consumers are now faced with broken promises. Costco has sent out a notice to its members explaining the situation and urging them not to cash any of these checks dated before November 13, 2008.

Costco will give customers a full reimbursement.

In a statement to its concerned customers, Motorola says "Customers are advised to gather the associated documentation and contact Motorola's technical support center toll-free at (877) 466-8646. We will work with them in having their rebates honored and address charges they may have incurred because of this.

"We apologize for any inconvenience this situation with CPG has caused.  We are committed to ensuring that you receive your rebate as soon as possible and that you will continue to have full confidence in Motorola, Inc."

Customers who were issued bad checks by Continental Promotion Group, Inc. can contact the Nevada Consumer Affairs Division (www.fyiconsumer.org) for assistance.  Individuals affected in the Las Vegas area may also call (702) 486-7355.  In Northern Nevada, residents with questions may contact the Reno office at (775) 688-1800.