How cashing a Snuggie rebate could cost you $150
Filed under: Credit, Ripoffs and Scams, Fraud
What's not to love about a Snuggie? Sure it's no Slanket, but it keeps you warm at home, at sporting events and even makes it easy to identify the members of your cult, erm...family, when you're out at the mall. But a company is using the warm and cozy covering to try and extract $150 from your credit card by pretending to send you a rebate check for $8.95. Snuggie lovers aren't the only ones at risk by these As Seen On TV scammers: People who purchased a Ped-Egg or an Aqua Globe are also receiving the same check.Small checks that enroll you in some service aren't new; credit card companies have used them for many years to trick customers into signing up for balance insurance and other extras. As horrible as these tactics are, they always have a paragraph on the back of the check telling you what will happen if you cash it. According to user stickfig on The Consumerist boards the warning on this check reads;
"I authorize Great Fun to charge the annual membership fee after my free trial. I agree to a thirty-day trail offer in Great Fun. I understand that the $149.99 annual membership fee will be charged to my credit card on file with Snuggie unless I cancel my membership by calling 1-866-709-4170 before the end of the trial period. My membership will be automatically renewed and I will also be charged every year thereafter at the then-current fee unless I call to cancel for a refund of the unused portion of the current year's fee. By cashing this check I authorize Snuggie to securely transfer my credit card information to Great Fun for enrollment, billing and benefit processing"
It's pretty clear what will happen once you cash this check. What you really need to ask yourself is whether or not the "rebate" -- which won't even cover the cost of a movie ticket -- is worth the time and hassle to call and cancel your membership to Great Fun. If you have any doubts about the danger of dealing with Great Fun, the 24 pages of complaints at the Complaints Board should make it very evident that you're not dealing with a straight-up company.
The fact that Snuggie has shared, or likely sold, your information to Great Fun to cover the cost of the second "free" Snuggie only adds to the list of reasons not to buy from infomercials. In most cases you can buy the exact same item at a big box store without the obscene shipping and handling charges.
If you absolutely must order it from the infomercial, log onto your credit card website and create a onetime use number with a limit matching the cost of your purchase. This way, you won't ever have to worry about recurring credit card charges for monthly shipments, oddball services such as Great Fun and whatever else these bottom feeding companies come up with to try and take your money without providing anything in return.
Finally, with all the check fraud going around these days, you shouldn't even think twice about cashing a check you weren't already expecting. If it's not signing you up into a fake service, it's likely part of an advance fee scam, which will bring you a whole new world of pain. Next time a check comes with this warning, throw it in the shredder, use it to start your next campfire, clean up after your dog on a walk; anything other than cashing it!
Because the old adage still stands: There is no free lunch!
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As Seen on TV Product Reviews
Small checks that enroll you in some service aren't new; credit card companies have used them for many years to trick customers into signing up for balance insurance and other extras. Infomercials are full of tricks. Browse through this gallery to view some products sold on TV.
Cassandra Shie, AOL
AP
WalletPop is not responsible for caption content.
Reader Comments (Page 1 of 5)
7-13-2009 @ 8:28PM
Meggan said...
wow you guys are lame
Reply
7-14-2009 @ 10:50AM
alex said...
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7-13-2009 @ 8:29PM
ycav4424 said...
I started an internet debit card account at my bank along with my regular checking account, just because of these scams. I keep just enough in that account to cover what purchase's I might make on the internet. It has already saved me $150.00 when they saw that there was only $20.00 in there at that time. Most of the things that are sold on these ripoff sites cost double just for shipping. They sell the same things in the stores without shipping. Besides who needs all of that crap anyway.
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8-12-2009 @ 4:54AM
billsstoy said...
Good tactic there ycav4424. There is one other one that will send these people into orbit also. I went to a local payday loan business where they sell preloaded Visa and Master Cards. I put 25 bucks on the card and used $15 of the money at the grocery store, leaving $15 on the card. Now if I see something that I want to try, I use this card, then never return the item after the trial period. They have called me and I just hang up on them because I that's what my lawyer said to do. Just ignore them. I get a new card and look for one of these slime bags to screw before they can screw me. It s really funny. If enough people do this to them, it will stop.
7-13-2009 @ 8:41PM
james said...
this is nothing new to me i see it all the time it's like dancing through a mine field beware people it's all a scam. these thieves are not making money on 19.95 junk only
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7-13-2009 @ 8:58PM
Scott said...
Snuggie is one of the most crooked mail order firms I have ever seen. They advertise the blankets (cheaply made) at a bargain , then "add" one for each individual order. They say (quickly and furtively) "just pay shipping and handling". They further add a "fifteen dollar value" crackerjack quality reading light for "free". It's a plastic, cheap piece of x#*XX##!
The most amusing thing about their scam is that the "Shipping and Handling was $15.00 per blanket!!!! This came out to be MORE THAN THE ORDER!!!!
My toast to 'SNUGGIE' is that they take a well deserved hard fall . I can't believe that they are still allowed on air by the FTC or other agencies.
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7-13-2009 @ 8:59PM
Phil said...
Haband is using the same trick, sending you a check for $8.95 and if you cash it and dont cancel you will be billed for about $150.00
Someone should do something about this bad business practice.
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7-14-2009 @ 2:45PM
Larry said...
It is stunning that the government purports to protect you from all things, and they cannot put a stop to the simple scammers. We get many calls for service from older people who have been scammed by phone,mail, email and door-to-door.
7-13-2009 @ 9:40PM
Jim said...
Melissa -- I would suggest you take some of that massive amount of money you earned and invest in spelling and grammar lessons.
Normally I wouldn't insult a total stranger like that -- but let's face it, folks, Melissa is not a real person. I have seen this exact same ad twice this week attached to other articles. A scam attached to an article about internet scams -- how rich!
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7-13-2009 @ 9:45PM
E SCHIANO said...
I HAD A ROTTEN EXPERIENCE WITH READERS DIGEST OF ALL COMPANIES. THEY OFFERED A FREE BOOK, AND A MEMBERSHIP TO A CLUB, UNLESS IT WAS CANCELLED. I CANCELLED THE MEMBERSHIP IN PLENTY OF TIME, AND THE NEXT THING I GOT IN THE MAIL WAS A BILL FOR THE "FREE" BOOK. NO AMOUNT OF EXPLAINING OR QUESTIONING WOULD MAKE THEM RESCIND THE BILL. I PAID IT, BUT WROTE AND TOLD THEM WHAT I THOUGHT OF THEIR MISERABLE PRACTICES. TWO MONTHS LATER---THE SAME OFFER---WHAT A CROCK--------------
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7-13-2009 @ 9:53PM
Marylynn said...
I can't thank you enough for running this article. I have one of those 'rebate' Snuggie (actually gave the things away as gifts) checks & just haven't gotten around to doing any deposits yet this week. Was planning to deposit it in the morning!
Thanks to your article you just saved us 150/year. We plan to use this check to teach the kids that it's important to read the tiny print.
Reply
7-14-2009 @ 2:42PM
originlcin said...
I advise all of my clients (usually after the fact) to READ every freakin' piece of print on any document. A good rule of thumb is that, if they have to keep it in teeny print to purposely make it hard to read, they probably don't want you reading it.
7-13-2009 @ 9:53PM
Dee said...
I never order these things online or over the phone, if I want it bad enough, I wait until my local store has it in there "as seen on tv" section. I can then look at it, decide if I want it, save the s&h (who needs double if it ain't good, I'll be returning it anyway) and don't worry about the hype and fake rebate checks, 'cause the company doesn't have name, address or cc #. Enough said!!!
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7-13-2009 @ 9:59PM
Michelle said...
I have dealt with 'Great Fun' in the past and it sure isn't "great fun" to do. I hate those SOBs. My issue dealt with Budget car rental. Budget told us they would send us a frequent renters' check. We got a check that said it was from 'Budget' for $10 and cashed it and lost $150 from Great Fun. I reported them to the Better Business Bureau. There was NO writing on that check and no supporting documentation explaining that Great Fun was going to go through my pockets if I cashed it. I got half of my money back and called it a day. I still receive marketing offers from Great Fun to this day, even after filing a police report against them for harassment for sending me checks at least twice a week to sign up for things after I demanded to be removed from all marketing ventures. I hate Great Fun and am glad that someone is finally calling them out. Thank you, Wallet Pop.
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7-13-2009 @ 10:05PM
MIKE said...
E SHIANO...HUMMM. I HAD THE SAME EXPERIENCE WITH READERS DISGUST ABOUT 25 YEARS AGO. HAVE NOT PICKED UP ONE OF THEIR BOOKS SINCE.
Reply
7-13-2009 @ 10:09PM
kathy said...
beware , of the majicjack also there a scammer when you try mailing it back for a refund
Reply
7-13-2009 @ 11:09PM
John Doe said...
Radio Shack and Best Buy now have the MajicJack(?) so if you don't like it, you can return it to a real store for your refund.
7-14-2009 @ 1:24AM
bILL said...
I returned MAGICJACK successfully and wasnt charged on my credit card. U have to read the directions carefully and comply with them to a "T". Plus they have IMers on their site to help.
7-13-2009 @ 10:10PM
KAREN said...
Never cash a check without looking it over. Everyone should notify their bank and tell them about these checks so that if they are cashed they would ask if you are aware of the printing on the back and that you are joining a club (whatever). My bank will not allow anyone to touch my funds without me signing a bank document allowing it. This will help stop those who try to trick you into joining. Everyone protect yourself!
Reply
7-14-2009 @ 8:59AM
Jerome Crosson said...
For Schiano and anyone else who didn't know: Rd is NOT the all American business we imagine. RD's major source of income is selling their extensive mailing lists, not the magazine ot associated advertising. And who wants the mailing lists ?
All the scammers, such as Snuggie and the others who use fine print and other tricks to steal.
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