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By Adam Fendelman, About.com Guide to Cell Phones

Cingular's (now AT&T) Funny Mail-In Rebates Going To Court

Wednesday July 25, 2007
Mail-in rebates -- Pesky mail-in rebates, should I say -- are an annoying part of the cell phone industry. Displayed prices generally involve filling for a mail-in rebate and waiting, and often fighting, to get it back.

But some customers didn't like how Cingular (now AT&T) brought the concept one step further by replacing the rebate with a "Visa Reward Card" that included conditions, such as a time limit. A reward card is not as easy to use as cash or a check. Just think of that Wal-Mart or GAP store credit you've been carrying around for a year, always forgetting to bring it when shopping.

So today, a lawsuit brought under California's consumer protection laws was allowed to proceed. To be continued.

More on rebates and why it is a catch
What to do f you are having trouble with cell phone rebates

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Comments

July 26, 2007 at 9:55 am
(1) Alexander Manuel says:

Great- another frivolous lawsuit to clog up the court system and “shakedown” reputable companies for whatever they can get. How can anyone say using a Visa card is less convenient than waiting for a check in the mail with a straight face? Were they expecting AT&T to stuff an envelope with cold hard cash and send it in the mail? The Visa card you can use right away, the check requires you to: a) have a checking account, b)go to the bank to stand in line, c)wait for it to clear, d)access the funds by writing a check (or via debit card). Get real!!!

July 29, 2007 at 8:24 pm
(2) ghengis says:

Every wireless companies want to make money no matter what. its better to have the visa reward card but hey if someone thinks ita a problem then just somewhere and use the visa card and then return it get the store credit ( valid for more then 1 yrs) . Quit the habit of taking things to court.

August 3, 2007 at 12:59 pm
(3) Jen says:

Oh, it’s not that easy though Alexander and ghengis!

They only issue the cards in $25’s and $50’s…so when I upgraded all the phones on my family account (4) and had a $75 rebate on each, I received 4 $50’s and 4 $25’s. Then…you can’t use the card for just part of a purchase. Say you spend $60 at Target, you cannot use a $50 card and put the rest on your debit or even pay cash. The purchase has to be less than the card amount or exactly equal to the card amount. The remainder stays on the rebate card. Which you then have to keep track of so you can use the remaining, say $5.06 for a few packs of gum or something - and you still end up losing the odd amount of $.50 or whatever your change is.

They suggested I use it to pay for gas but here’s another catch - you can’t use them at the pump. You have to pump exactly the amount of the card and then pay for it inside. Obviously possible but still silly.

You can also use them to pay your cell bill online, which is what I ended up doing. This is STILL a pain though as you can only make 2 (or maybe it’s 3) payments a day online. So my family plan bill is $135 and I can put in 2 $50’s and a $25 but then I have to wait until the next day to pay the remaining $10 out of my checking account.

It’s the most obnoxious system for rebates I’ve ever seen and I’ll be thankful when they’re forced to quit doing it! Yes, they’re giving you the money but they’re making it so painful to use it that I’m sure they end up with many unused balances on them that they’re making most of it back - which of course is part of the strategy.

One more thing…they expire in 6 months so you have to watch that you use them on time. At least with a check, once you take the extra trip to the bank, it’s yours until you decide to use it!

I’ll take the inconvenience of depositing a check any day over this!

September 12, 2007 at 10:06 pm
(4) dave says:

when is cell one going with at&t

November 1, 2007 at 3:06 pm
(5) Mike says:

Here’s an idea, if there is a rebate, just make it automatic in the price, oh wait, it’s a marketing strategy because that money will never be given out most of the time as most will never get the rebate. Non-instant rebates should be as archaic in 2007, why do we all have to waste so many resources making copies of who knows what to potentially get a gift card. Just credit the account and done!

December 6, 2007 at 4:54 pm
(6) Todd says:

Manuel,

I can say with a straight face that using the rebate card is definitely harder than waiting for a refund check. Only a handful of places accept these cards. This is not something accepted all over the world simply because it says Visa. I would appreciate money back in the form of a check. If I have to buy the phone with money, stands a reason I should receive money that is readily available to use.

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