Getting a rebate check from a bankrupt firm is a long shot
Q. I purchased a laptop computer at Circuit City during the day after Thanksgiving sale and paid $650, knowing that I would get a $150 rebate check. I sent all required documents the next day. I received an e-mail from Circuit City that my rebate was valid and would be processed within 10 to 14 business days. I called weekly and was always told it is being processed and that a check was issued, but not mailed. Now, the 800-number does not work. I still have not received the rebate check. Is it a lost cause?
Jason Lelio, Kingston
A. I'd like to be optimistic. But it's hard to be when the company you made the deal with not only filed for bankruptcy protection, but then shut every store and liquidated its assets. And they didn't even say the check was in the mail.
This is becoming an increasingly common problem as more and more retailers close. Several readers wrote with similar questions, both about Circuit City and other businesses, such as Ritz Camera.
Edgar Dworsky, a consumer lawyer who was director of consumer education at the state Office of Consumer Affairs and Business Regulation, suggests requesting a charge-back in writing from your credit card company.
Dworsky, who now runs ConsumerWorld.org, said the Fair Credit Billing Act - a federal law that spells out consumer rights when using credit - allows 60 days to dispute a charge. However, he said by pursuing this as a charge-back for the company not living up to the terms of the sale, the 60-day rule should not apply. Credit card companies, which act as the middleman between the purchaser and the merchant, may be able to recover the money for you. This may be a long shot, but it's worth trying.
You also can make a claim in Circuit City's bankruptcy case by clicking on the "Circuit City Stores Inc." case at www.kccllc.net.
For $150 on a $650 purchase, it's worth playing this all out - as frustrating as that might be. This also serves as a caution both about rebates and about dealing with companies that are known to be on their last legs. You might be able to get a deal, but don't expect much else. Gift cards have been swallowed in bankruptcies along with expected services and rebates.
Rebates have long been a pain for consumers. They are enticing, but companies bank on consumers not filing for them and use processing companies that make receiving the rebate a long, painful, and often futile exercise.
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