InPhonic Rebate Scam

[washcycle]

I've been waiting for almost a year for 2 cell phone rebates to arrive from InPhonic. I purchsed the cell phone online at  LowCostCells with a 2 year contract with Cingular / AT&T. All the rebate forms were all filled out properly, sent in on time, everything was APPROVED. Here's the message I've been getting from the InPhonic rebate center (http://cellphonerebates.com/) for the past 6 months:

"Claim approved. Payment pending, please allow 4-5 weeks for payment processing."

Every time I inquire about what's going on, they assure me that they are going to get those checks to me soon.  Does anyone know how to contact AT&T to complain about this company and try and get these rebates?  I don't plan to stay with AT&T after the contract is up in another year unless this matter is resolved.

[LakeRat]

This isn't at&t's issue.  You chose to purchase your phone from a differnt company.  THAT company (InPhonic) is the company you have issue with, at&t does not have any control over them.

To use an analogy... say you wreck your GM car and you find an independent body shop that has a sign in the window that says "We us genuine GM parts"  You decided to have your car repaired there, but in the end are not happy with the results.  You would not even consider calling GM to complain... they supplied genuine parts, but didn't do the work.  Clearly here you have issues with the body shop.

Now in this case Inphonic is selling phones.  With a 2 year contract they are able to give you a better price becuase at&t pays them a commission on the 2 year contract.  But at&t doesn't own them, or control their business practices.

Documenting the rebate hasn't been paid, and contacting your states attorney generals office and Airing your greif about InPhonic online to warn others are both indeed things you should be doing.

Threatning to leave at&t if they don't get your rebate for you is not going to do one thing for you.

[washcycle]

Your analogy does not apply in this case.  InPhonic is an industry player that has partnered up with AT&T.... they are on the same team. InPhonic became a "most valuable player" on the team thanks to its aggressive pricing strategy, including heavily subsidizing free cell phones with discounts or rebates.   InPhonic makes its profit with AT&T through large volume carrier commissions... as welll as not paying out the rebates they promise the consumers.

As far as I'm concerned.... AT&T is as guilty as InPhonic if they aren't doing anything to correct the problem.  I promise to leave AT&T if this situation is not resolved.

[Blue4Life ACE - Professor]

Wouldn't you have the same problem if you chose a different carrier and went through InPhonic? The problem with 3rd party retailers is that many have additional terms that are beyond the control of the carriers. InPhonic is providing the rebate, not the carrier.

[TNgal22]

All I can say is call AT&T, we are just customers, and ask them what to do. I am sure they will say to call the other company since they are the ones with all the records, not AT&T. Sorry you got scammed.

The other poster is right though, AT&T is not at fault InPhonic is. Another analogy: You go to one doctor and he loses your paperwork, would you call another doctor to complain? That other doctor does not have your paperwork, the original doctor does/did. Just because AT&T is the larger company doesn't mean they have the paperwork to support your rebate scam. I would call InPhonic and ask to talk a manager or even the owner.

[DWC1 ACE - Professor]

Find out what recourse you have via you state regulatory commission or Attorney Generals office.  It may be much faster to persuade InPhonic to comply that way.  The BBB is also helpful sometimes.

[washcycle]

It's certainly a flawed model and just a matter of time before  there's federal regulations of rebate incentives by electronics manufacturers and retailers....since nobody can clean the system of all this junk.  It's just too bad everyone can't just get together and agree that what's going on is not right... that it all needs to change.  In the mean time, carriers should take a stand against companies like InPhonic because of their poor business practices. 

Personally, I don't use my cell phone much, and I really  could do very well without one.  I plan to just not go with ANY cell phone service and feel good about NOT supporting an industry that is full of corruption.

[DWC1 ACE - Professor]

InPhonic has already been sued by several states and had to pay penalties.  InPhonic is one of the largest third party retailers for most cell phone companies and has a terrrible reputation.

[washcycle]

Dear AT&T,

I would like to bring to your attention criminal activity involving one of your retailers, InPhonic.  As you may be aware, the Better Business Bureau has a very long report on InPhonic ( http://www.dc.bbb.org/report.html?national=Y&compid=23004111 ). 

According to this report, InPhonic has been using several business names including:

A1 Wireless
Cellular Buys
Cellular Choices
Continental Promotion Group
Corporate Wireless
FonCentral
Inphonic
InPhonic Inc
INTELENET Wireless Customer Service
Liberty Wireless
lowcostcells.com
mobile Pro
MSN Mobile Customer Service
Phone Deals
StarNumber, Inc.
TMI Wireless
Wirefly
wirefly.com
Wireless Marketplace
WorldPerks Wireless Service
Younevercall.com

According to this report , June 8, 2006 the Attorney General of Washington DC filed suit in Superior Court against InPhonic. Also,  April 27, 2007 Federal Trade Commission suit claiming deceptive and unfair business practices regarding rebate offers. No surprise, InPhonic is very well known for it's illegal and deceptive business practices in the industry... namely cell phone rebate fraud. 

I just happen to be a recent victim of Inphonic and the phony rebates it offers.... I have not received the rebates that I was promised when I purchased the phone from LowCostCells online and I agreed to the 2 year plan with Cingular / AT&T.  I have been waiting for almost a year for 2 rebates to arrive from InPhonic.  I have been watching the InPhonic website that shows the status of the rebate ( http://cellphonerebates.com/ ).  Here's what it's been telling me for almost 6 months:

"Claim approved. Payment pending, please allow 4-5 weeks for payment processing. If you have any questions or concerns, please contact us by calling (866) 607-9877 or email us at rebatestatus@inphonic.com."

The InPhonic Rebate Center no longer replies to my emails and I have reported this crime to the BBB, FTC, the Attorney General, as well as several online groups.

As a result of this crime (fraud) against me, I will not conduct business with any company that has partnered up with InPhonic, this includes AT&T.  I intend to finish the 2 year contract as I promised, but if this crime is not properly dealt with by AT&T, I cannot continue as a customer after that.  

I would hope that AT&T would do the right thing and reconsider partnering up with a scam business like InPhonic.  As more and more people become a victim of this rebate fraud, I do believe that AT&T will lose customers as a result.  

Good day.

(BTW, I will be posting this reply to several newsgroups on the internet as well)

[Blue4Life ACE - Professor]

Considering that this is a customer-based forum, if you honestly believe that contacting AT&T Mobility directly will resolve your issue with a 3rd party reseller's rebate, you can contact them directly either by writing a letter to the address listed on your bill or check out the Meet Us link on AT&T Mobility's web site.

Unfortunately, InPhonic is one of many 3rd-party resellers that sets their own terms & conditions well beyond what any carrier does. I'm not sure what kind of success you're going to have with getting AT&T to resolve a 3rd party rebate that they have nothing to do with, your best bet is to:

1. Contact InPhonic if you don't receive the rebte within the time that they specified.
2. File a report (attorney general, ftc, bbb, etc....) against InPhonic for not honoring their rebate.

[DWC1 ACE - Professor]

InPhonic and it's related companies filed for bancrupcy protection.

InPhonic, which sells wireless products and services, sought bankruptcy protection after it agreed to be bought by a private-equity firm.

InPhonic listed assets of $120.9 million and debt of $179.4 million in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Wilmington, Del.

http://www.washingtonpost.com/wp-dyn/content/article/2007/11/08/AR2007110802164.html