Here is a simple overview of how a rebate with CPG works. Company X puts a rebate on its product, let’s say for $20. Company X expects to pay out 5000 of these rebates to consumers. Company X would then put the $100,000 needed to cover that rebate into CPG’s bank accounts. CPG basically escrows the money for consumers. CPG is trusted with this money in order to make sure the consumer is “safe.”
We have it from good sources currently that CPG owes consumers somewhere in the neighborhood of $9M to $12M worth of rebates. The problem here is that CPG currently only has about $3M in cash to cover that $9M-$12M in rebates owed to the consumer. Where that money has gone to is anyone’s guess and we will leave speculation up the law enforcement authorities and the courts.
Currently CPG is contacting its customers telling them that they will need to yet again deposit money into CPG accounts in order for CPG to have the cash to cover rebate checks to consumers. This is money that companies have already paid CPG previously. CPG is telling its customers that if they do not pony up AGAIN, consumer rebate check payments are in jeopardy. In our example above, CPG is not sure where the $100,000 is that Company X paid them, but we are sure that they want another $100,000 or CPG will start bouncing consumers’ MIR checks.
If you have a rebate out with CPG, I would check into it quickly. If CPG is no help, contact the company that manufactured the product directly and explain your concerns.