Mother Talkers

Government Rebate Checks Go Out

by Elisa

Tue May 13, 2008 at 11:34:10 AM PDT

How will you spend your "stimulus" rebate check? Will you go out and spend it as our dear prez has encouraged us to? Or, will you do irresponsible things like pay off your debt or horde it in a savings account?

Of course, the businesses President Bush is intent on helping with these checks, hope you do the former. In fact, they have wasted no time in busting out their parasitic marketing pitches for your government rebate, according to the New York Times.

Sears has started a “stretch your stimulus check” campaign. Supervalu, the grocery chain, is promoting a “watch your refund grow” program, and Kroger is calling its stimulus gift cards “a powerful new financial tool.” All three companies offer shoppers a 10 percent bonus if they buy a gift card with their checks.

Domino’s Pizza is also offering a “recession-busting” special of three pizzas for $12. “While you’re feeding the economy with your special refund check, let it feed you back,” the company said in a news release promoting the offer. Home Depot is encouraging customers to buy energy-efficient products, like compact fluorescent bulbs, to save money.

Ironically, market behemoths Wal-Mart and RadioShack are the reluctant vultures in this article.

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“A lot of people probably have high-cost debt they need to pay off with this money,” said Jean Ann Fox, director of financial services at the Consumer Federation of America. “And if you’ve tied up your stimulus check in a card that can only be used at one store, you can’t do that...”

Some companies are frowning at their competitors’ efforts.

Stephen Quinn, Wal-Mart Stores’ chief marketing officer, said he was skeptical of any offers that required shoppers to commit their checks to a gift card for just one store.

“Anything that locked in their money at one store is not appropriate” for Wal-Mart, he said. “Putting $600 on my gift card greatly enhances the chances that you will spend the money with my store. But we do not want to encourage any behavior that might be considered irresponsible.”

Wal-Mart and RadioShack are offering to cash checks, a program aimed at customers who have no bank accounts. Wal-Mart’s check-cashing service is free. RadioShack’s requires a purchase, and the unspent balance of the check goes onto a prepaid MasterCard that can be used elsewhere.

RadioShack executives said they had decided against a gift-card program.

“It just seemed like that was not right,” said Bob Kilinski, a senior marketing executive at the retailer.

You think? Honestly, I don't foresee our rebate going anywhere other than the necessities: the mortgage and groceries. Sorry, dear president. What about you? Where will your rebate go?

Tags: stimulus rebate checks, government rebate checks, Sears, Domino's Pizza, Supervalu, Wal-Mart, RadioShack (all tags)

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