Recently, a company called Continental Promotions Group or CPG filed for Chapter 11 Bankruptcy. This has major implications in the world of electronics retailers and consumers as they are one of the largest companies to process rebates on consumer electronics and especially computers, peripherals and software. According to their chapter 11 filing, the company only has assets between $1 and $10 million dollars with liabilities of $10 and $50 million. So, how does this impact consumers who are looking at buying products this holiday season that have rebates or people who may have submitted a rebate claim?
Don't Count On A Rebate
If you happen to be shopping for some computer related products this year, don't factor in any rebate discounts into the cost of the products. The reason for this is that many of these rebates were being offered by manufacturers and retailers to be processed by Continental Promotions Group. Any rebate that is handled through them will likely not be processed or issued as a check as the bankruptcy protections mean that creditors will be paid off before consumers rebate checks are issued. As a result, most rebate checks won't even be issued.
Don't Cash That Rebate Check!
If you happened to have submitted a rebate form recently and received a check, you might not want to cash them right away. With the bankruptcy filing, checks issued by Continental Promotions Group may not be honored by the banks. If you do submit one, there is a chance that it will bounce and your bank will charge you fees in relation to that check.
So, what should you do if you do have a check? Contact the manufacturer or retailer that was offering the rebate to verify if the checks were issues by CPG and if they will be honored. Several technology companies have already posted details about their rebate programs to notify consumers if they are affected and what can be done about it.
Are Rebates Worth It Now?
In these hard economic times, rebates have been a major incentive for people shopping around for the best price on computers and electronics. Now with the major rebate processor in bankruptcy, the already time consumer process of handling rebate has become even more burdensome. It is still possible to get some great deals with rebates if they are offered via other parties. The problem is that there is greater risk now for rebates to not be issued or honor without first confirming them with the manufacturers. Because of this, I highly recommend that consumers try to avoid rebates unless you are willing to put up with the effort or are willing to Fight to Get A Failed Rebate.
