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CyberRebate Bankruptcy Issues

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Question: 
Do you have any information to help the many, many people who appear to be losing many, many dollars due to the CyberRebate bankruptcy?
Answer: 

The CyberRebate story presents a cautionary tale for customers and bankers alike. For banks, it is a prime example of why you should perform due diligence prior to entering into a Weblinking arrangement with a third party. Your reputation can be sullied if the company fails to perform as promised, which is precisely what happened with CyberRebate.

CyberRebate offered products for sale at greatly increased prices. Their pitch was that you would purchase the product, then apply for a full rebate. You would have to wait a while for the rebate, during which time CyberRebate would have the use of your money, but you would then get a full rebate, essentially making your purchase free.

CyberRebate was banking on the fact that many people would simply not do the paperwork to get the rebate and between the unclaimed rebates and the fact that they would be using everyone's money for many weeks before the rebates had to be paid to those who did claim them, they'd be able to make money. Wrong.

They went into bankruptcy, leaving behind hordes of disappointed customers. For some, it's an incredibly expensive lesson. One guy is reportedly owed $115,000 in rebates. He was purchasing the merchandise, selling it on eBay, then collecting the rebates.

The old saying is as true in the Internet age as ever before. "If it sounds too good to be true . . ."

Also, because the rebates weren't owed until many weeks after the purchase was made, it was too late for customers to protest the charge on their credit or debit card. First published on BankersOnline.com 5/06/02

First published on 05/06/2002

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