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AT&T Slammed Over Rebate Policies

Consumers looking for rebate get a debit card instead

By Mark Huffman
ConsumerAffairs.com

August 31, 2007 

AT&T rebates are often frustrating on both counts.

“I converted to AT&T because of their rebate of $100,” Robert, of Morris Plains, NJ, told ConsumerAffairs.com. “But what I got was a Visa card with a lot of restrictions that expires in 4 months. AT&T is a real scammer.”

Robert is not alone in his complaint. In California, a group of consumers sued the telecom giant in 2006 over that very issue.

The suit, brought under California's consumer protection laws, states that the cell phone company promised to pay rebates to people who bought cell phones, and advertised discounted prices that reflected the promised rebate.

But instead of getting a rebate check, purchasers received a "VISA Reward card" that can only be used under numerous restrictions and for a limited period of time. 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.

“In their intense marketing for cellular services, cell phone companies make price the paramount focus,” said Foundation for Taxpayer and Consumer Rights' Harvey Rosenfield, one of the lawyers in the case.

“Cingular told consumers that they would ultimately pay a discounted price, once the rebate was received. In some cases, consumers were led to believe the phone would be 'free' -- that it would end up costing them nothing after the rebate," he said.

"But instead of getting money back, consumers get a VISA Reward card. Purchasers never got the promised discount. None of this was made clear to consumers. This deceitful practice hurts consumers and other cell phone companies that advertise honestly.”

Cinglular/AT&T did its best to derail the suit, moving it from state to federal court, but in July of this year a federal judge ruled the case may proceed.

Meanwhile, in North Carolina AT&T’s DSL rebate policies drew the fire of state Attorney General Roy Cooper.

Cooper said he’s extracted an agreement from AT&T to improve the way it provides rebates after his office received 16 complaints from angry consumers in the Tar Heel state.

Cooper says AT&T has agreed to provide rebates to eligible customers within 60 days of receiving the forms and investigate customer complaints, keeping detailed records of them.

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