# Chapter 11 bankruptcy and CyberRebate - no hope? **URL:** \ **Category:** Factual Questions\ **Created:** [May 16, 2001, 6:54pm UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637 "2001-05-16T18:54:10Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Gozu\_Tashoya](https://avatars.discourse-cdn.com/v4/letter/g/7993a0/32.png) [@Gozu\_Tashoya](https://boards.straightdope.com/u/Gozu_Tashoya)\ **Post date:** [May 16, 2001, 6:54pm UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/1 "2001-05-16T18:54:10Z")
Well, [http://www.cyberrebate.com](http://www.cyberrebate.com) has filed for bankruptcy. For those of you who aren’t familiar with their business model (such as it was), they’d sell you items for inflated prices then promise to send you back your money in 14 weeks. Well, a search for the site here made it seem safe enough, so I went and bought some stuff, submitted, my rebate forms, and then saw that they filed for bankruptcy. Now, I’m guessing that the rebates are among the debts that they won’t have to pay under the terms of bankruptcy and that I am SOL. On the other hand, if this is not/would not be the case, then I’d feel a _lot_ better to hear it. So, am I gonna see any of my money again? ---
**Author:** ![Telemark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/telemark/32/372_2.png) [@Telemark](https://boards.straightdope.com/u/Telemark)\ **Post date:** [May 16, 2001, 10:01pm UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/2 "2001-05-16T22:01:50Z")
Based on what I’ve read, you are indeed SOL. I don’t think there is any money coming back out of these folks. ---
**Author:** ![RealityChuck](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/realitychuck/32/195_2.png) [@RealityChuck](https://boards.straightdope.com/u/RealityChuck)\ **Post date:** [May 16, 2001, 11:17pm UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/3 "2001-05-16T23:17:42Z")
No chance of seeing your money. You are what is known as an “unsecured creditor,” which means you’re last in line after all the secured creditors – banks, suppliers, etc. – are paid. While it’s theoretically possible you could get something back, the Devil will probably be playing ice hockey before that happens. Sorry. ---
**Author:** ![kanicbird](https://avatars.discourse-cdn.com/v4/letter/k/5f8ce5/32.png) [@kanicbird](https://boards.straightdope.com/u/kanicbird)\ **Post date:** [May 17, 2001, 12:26am UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/4 "2001-05-17T00:26:59Z")
so how much did they take you for? My mother was very intrested in getting something from them. I talked her out of it when I found the $150 item for $27 on another site. ---
**Author:** ![Gozu\_Tashoya](https://avatars.discourse-cdn.com/v4/letter/g/7993a0/32.png) [@Gozu\_Tashoya](https://boards.straightdope.com/u/Gozu_Tashoya)\ **Post date:** [May 17, 2001, 6:46am UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/5 "2001-05-17T06:46:34Z")
_sigh_ Don’t suppose a class action suit could save my ass should one pop up, could it? **k2dave** , let’s suffice it to say that they took me for entirely too much money. I can afford to pay it, but all things considered I’m feeling like a major fool, and a sucker, and several different kinds of moron, so I’d rather not actually name a figure. It is more than a month’s salary though (hey, it seems like a good idea when you’re supposed to get it back)… ☹ Yeah, I’m not digging this situation at all. ---
**Author:** ![kanicbird](https://avatars.discourse-cdn.com/v4/letter/k/5f8ce5/32.png) [@kanicbird](https://boards.straightdope.com/u/kanicbird)\ **Post date:** [May 17, 2001, 12:45pm UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/6 "2001-05-17T12:45:52Z")
> [@](#): > > . It is more than a month’s salary though OUCH!!! If it’s within 60 days what about returning the items and call your CC to reverse the chagres. ---
**Author:** ![sailor](https://avatars.discourse-cdn.com/v4/letter/s/a587f6/32.png) [@sailor](https://boards.straightdope.com/u/sailor)\ **Post date:** [May 17, 2001, 3:01pm UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/7 "2001-05-17T15:01:41Z")
if you paid with a credit card you are protected up to a certain point. Check before the term expires. ---
**Author:** ![kanicbird](https://avatars.discourse-cdn.com/v4/letter/k/5f8ce5/32.png) [@kanicbird](https://boards.straightdope.com/u/kanicbird)\ **Post date:** [May 18, 2001, 2:16am UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/8 "2001-05-18T02:16:33Z")
got a semi-spam email that might intrest you: > [@](#): > > Dear Sleuth Readers, > We just learned that CyberRebate, a vendor previously promoted by WhenUSleuth, has filed for bankruptcy. We take great pains and do extensive research to include only the best vendors and accurate information in WhenUSleuth. For months, while others heavily promoted CyberRebate, we stood by and watched and waited to make sure they were delivering rebates as promised. We monitored chatrooms to see if they were meeting obligations to customers and received various assurances from their executives. Only then did we decide to feature them. > > Unfortunately, we, like millions of others, were deceived. We goofed and we apologize to you, our valuable customers, for featuring them. We recommend that any readers who ordered from CyberRebate immediately call their credit card companies and dispute the charges. Please check to see if your credit card has any “Return Guarantees” associated with it. Amex Blue, for example, has 60-day return protection that might help. We will keep you posted if we find out more information. > > WhenUSleuth has always been dedicated to bringing our readers only the Web’s best offers and services. We want to assure you that we have re-doubled our efforts based on this experience. > > We thank you for your continued support > The Folks at [WhenU.com](http://WhenU.com) ---
**Author:** ![evilhanz](https://avatars.discourse-cdn.com/v4/letter/e/ba8739/32.png) [@evilhanz](https://boards.straightdope.com/u/evilhanz)\ **Post date:** [May 18, 2001, 4:00am UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/9 "2001-05-18T04:00:31Z")
You couldn’t smell this scam from two towns over? My faith in the Straight Dope community is diminished. You are SOL. I doubt a company like that has significant assets to liquidate. Cyberrebate was a ponsi scheme plain and simple. ---
**Author:** ![Bill\_H](https://avatars.discourse-cdn.com/v4/letter/b/a5b964/32.png) [@Bill\_H](https://boards.straightdope.com/u/Bill_H)\ **Post date:** [May 18, 2001, 4:05am UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/10 "2001-05-18T04:05:38Z")
Someone who sends me spam regularly just sent this: > [@](#): > > To all subscribers who have received a promotion email regarding CyberRebate: > > In the past 24 hours we sent you a promotion on behalf of CyberRebate. Please be advised that since then, CyberRebate has declared bankruptcy. We strongly recommend that you cancel any transaction that you may have concluded with CyberRebate. If you have made a transaction and cannot successfully contact CyberRebate directly, please consider the following: > > ·For credit card transactions: Contact your credit card company’s customer service department. Their phone number should appear on the back of your credit card. Explain the situation and ask them to reverse the charges immediately. > > ·For check transactions already sent: Contact your bank to stop payment on your check. (If not sent, simply void your check.) > > iPlace exercises great care in choosing advertising clients. This particular promotion was contracted and designed in March of this year. At that time, CyberRebate was viewed as a substantial company that could offer our subscribers a unique service. iPlace had no indication of CyberRebate’s collapse. > > It is our continuing objective to promote high quality goods and services that will be of interest and value to our subscribers. As with any business or financial agreement, we advise everyone to read and understand all applicable Terms and Conditions including Privacy Statements, before contracting for any goods or services. We offer you our sincere apology in this matter. I guess this is obvious in hindsight, but next time watch out when someone offers you something for nothing. ---
**Author:** ![Telemark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/telemark/32/372_2.png) [@Telemark](https://boards.straightdope.com/u/Telemark)\ **Post date:** [May 18, 2001, 2:23pm UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/11 "2001-05-18T14:23:31Z")
[http://digitalmass.boston.com/news/globe\_story.html?uri=/dailyglobe2/138/business/Dot\_com\_s\_customers\_in\_limbo-.shtml](http://digitalmass.boston.com/news/globe_story.html?uri=/dailyglobe2/138/business/Dot_com_s_customers_in_limbo-.shtml) I tend to think your money is gone, but there is still some slim home. ---
**Author:** ![SCSimmons](https://avatars.discourse-cdn.com/v4/letter/s/e495f1/32.png) [@SCSimmons](https://boards.straightdope.com/u/SCSimmons)\ **Post date:** [May 18, 2001, 2:30pm UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/12 "2001-05-18T14:30:47Z")
> [@](#): > > \*Originally posted by KKBattousai \* > **_sigh_ Don’t suppose a class action suit could save my ass should one pop up, could it?** Doubtful. There’s little basis for suing for damages beyond the money they already owe you, which is already in the purview of the federal court-and even if you could, and got a judgement, it would then go to the bankruptcy court to see if you got paid. If you’re lucky, you might get a few cents on the dollar … but I wouldn’t hold my breath. They can’t pay you if they don’t have money to pay you with, eh? If they have any real assets to liquidate, there might be some cash left over for the customers that got screwed. Trouble is, the ‘real assets’ for an e-business tend to be a few pieces of computer equipment and a customer database. ---
**Author:** ![Tommy\_the\_Cat](https://avatars.discourse-cdn.com/v4/letter/t/74df32/32.png) [@Tommy\_the\_Cat](https://boards.straightdope.com/u/Tommy_the_Cat)\ **Post date:** [May 18, 2001, 2:52pm UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/13 "2001-05-18T14:52:19Z")
Yesterday, NPR had a report on Cyber-Rebate’s failing. They quoted a few responses to a message board they had been monitoring. One guy said that he was out just over $39,000. Good god man, how the hell do you do that? So, as much as you’ve lost, I’m guessing it could be worse. Still, that sucks really bad. ---
**Author:** ![glee](https://avatars.discourse-cdn.com/v4/letter/g/b5a626/32.png) [@glee](https://boards.straightdope.com/u/glee)\ **Post date:** [May 18, 2001, 7:21pm UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/14 "2001-05-18T19:21:11Z")
Please can I ask how CyberRebates was supposed to work? ---
**Author:** ![kanicbird](https://avatars.discourse-cdn.com/v4/letter/k/5f8ce5/32.png) [@kanicbird](https://boards.straightdope.com/u/kanicbird)\ **Post date:** [May 19, 2001, 1:03am UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/15 "2001-05-19T01:03:31Z")
> [@](#): > > Please can I ask how CyberRebates was supposed to work? 1 you pay steeply inflated prices for goods 2 when you get them you fill out a rebate form to get most if not all of your money back and mail it. 3 (Should I, nah) You wait some time 4 You get a check for the money back and you are 🙂 ---
**Author:** ![dave316](https://avatars.discourse-cdn.com/v4/letter/d/76d3ee/32.png) [@dave316](https://boards.straightdope.com/u/dave316)\ **Post date:** [May 19, 2001, 4:12am UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/16 "2001-05-19T04:12:13Z")
if you want some laughs [http://communities.msn.com/CyberrebateRebateRecoveryAlliance/messageboard.msnw?action=get\_threads](http://communities.msn.com/CyberrebateRebateRecoveryAlliance/messageboard.msnw?action=get_threads) ---
**Author:** ![Kalt](https://avatars.discourse-cdn.com/v4/letter/k/b9e5f3/32.png) [@Kalt](https://boards.straightdope.com/u/Kalt)\ **Post date:** [May 19, 2001, 5:10am UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/17 "2001-05-19T05:10:32Z")
it seemed like a good idea… simple time value of money. You pay $250 for a $20 DVD - they take your money and put it in a big “pool” of all the other money, collect enough interest off of it to pay you and make a few bucks profit… they send you the rebate 14 weeks later… so you get your DVD for free and they get a profit - everyone happy. Paypal makes money off of the interest of everyone’s money that is sitting on paypal (actually, now they charge 1% of transfers over 100 bucks which sucks…) Of course you could invest the money yourself, but we want the DVD NOW - instant gratification is good. $39,000 - he musta bought a 30" TV or something… sucks. ---
**Author:** ![sailor](https://avatars.discourse-cdn.com/v4/letter/s/a587f6/32.png) [@sailor](https://boards.straightdope.com/u/sailor)\ **Post date:** [May 19, 2001, 5:44am UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/18 "2001-05-19T05:44:27Z")
While I feel sorry for people who lost a lot, I am amazed at how gullible and naive people can be. I am not familiar with CR, except what I have seen here. [quote] You pay $250 for a $20 DVD - they take your money and put it in a big “pool” of all the other money, collect enough interest off of it to pay you and make a few bucks profit… they send you the rebate 14 weeks later… so you get your DVD for free and they get a profit [quote] It seemed like a good idea? I don’t think so. We are combining _two_ operations here: the purchase of a DVD and the investment of capital. Suppose I buy the DVD for $20 straight. Then the proposal is I invest the remaining $230 and get $250 in 14 weeks… that’s comes out roughly at an interest rate of 35% annually. If you think you can invest money with low risk and expect that kind of return you’ll be taken for a ride. Furthermore, to pay investors 35% they have to get an even higher rate of return. Life is a game of consequences. If you do not do your homework, you will soon be parted with your money. It does not matter if you are mother Theresa, you will lose your money. I will try to remember to link to this thread whenever the next thread about “Why do we need to study math?” comes up. ---
**Author:** ![kanicbird](https://avatars.discourse-cdn.com/v4/letter/k/5f8ce5/32.png) [@kanicbird](https://boards.straightdope.com/u/kanicbird)\ **Post date:** [May 19, 2001, 11:36am UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/19 "2001-05-19T11:36:44Z")
I think that along w/ holding the money, they planned to make some from poeple not following through w/ the rebates. ---
**Author:** ![zuma](https://avatars.discourse-cdn.com/v4/letter/z/e9c0ed/32.png) [@zuma](https://boards.straightdope.com/u/zuma)\ **Post date:** [May 19, 2001, 12:27pm UTC](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637/20 "2001-05-19T12:27:56Z")
i have a lot to say regarding the cyberrebates scam-artists. and their “customers”, who are no better than the cyberrebates fools. these people are trying to get their credit card companies to foot the bill for their get-rich-quick hysteria. these people paid 2000 bucks for a palm pilot worth 150, tried to sell the loot on ebay for a fat profit, and when their distributor got hosed, they are now trying to scam their credit card company to foot their bill. these people basically loaned [cyberrebates.com](http://cyberrebates.com) money, a short-term unsecured loan, in return for whatever trinket they chose… maybe a gladiator dvd for a 170 dollar loan, or a dvd player for a 1400 dollar loan. they transferred their loan to the internet company via a credit card, and are NOW expecting the credit card company to reimburse them for their lousy investment. bed. made. lie. it continues to amaze me how adult people are unwilling to take responsibility for their actions. sorry for the rant here. [Next page](https://boards.straightdope.com/t/chapter-11-bankruptcy-and-cyberrebate-no-hope/65637.md?page=2)