Rebate case against AT&T set to move forward

A little over a month ago, we found a story about a woman who had a serious problem with AT&T’s rebate system. Instead of issuing you a check like in the good ol’ days, AT&T (then Cingular) has a policy of issuing you a rebate card. It is issued through Visa, so it’s accepted anywhere you can use a credit card. However, there are a number of drawbacks that benefit AT&T and leave the consumer with a lesser rebate. And now AT&T is headed to court over it.

The first complaint is that Cingular/AT&T isn’t up front about the method of rebate:

By the time consumers found out they were not getting a rebate check, it was too late to cancel Cingular’s wireless service without paying an Early Termination Fee of $175, the suit alleges.

In addition to that, we had mentioned the problem with small remainders on the card. Once you’re below a dollar, it seems common practice to get rid of the card. That means AT&T isn’t doling out a full refund, and can recoup a portion of their refunds via unspent funds.

In addition, you can’t go deposit a credit card in a savings account — or even a checking account for that matter. This allows the consumer to use the money as they want and spend it as they normally do. Though using a rebate card isn’t difficult, it forces another level of complexity into a transaction.

AT&T has changed the wording on its rebates to “mail in rebate card,” though some consumer groups still find that misleading. We think it’s fine — a step in the right direction at the very least. We fully expect, however, that AT&T will be shelling out some dough in this one.

[Consumer Affairs]

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