West Virginia AG Urges Consumers to Think Twice Before Spending Your Tax Rebate Check on Gift Cards

May 6, 2008 -- The Internal Revenue Service has begun giving qualifying taxpayers rebate checks. And some retailers are competing to get your rebate check by offering to sell you gift cards. What is the incentive to buy a gift card? Stores are offering gift cards worth 10%-17% more than your rebate check.

However, West Virginia Attorney General Darrell McGraw warns consumers about purchasing one of these gift cards. Many of the retailers require you to use the entire rebate check to purchase the gift card.

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"If you put all the money towards a gift card, you won’t have any money left to spend at another store, pay off debt or save," said Attorney General McGraw.

Many of the stores offering the bonus gift cards are not locally owned stores that could benefit most from your check. You will also have less flexibility to buy American.

You may want to pay off other debts you have incurred during the recent price increases of gas and groceries, but you won’t be able to pay any debt down if all the money is on a gift card.

Any consumers wishing to file a complaint about the purchase of a good or service or to alert the Attorney General about unfair or deceptive practices may do so by calling the Consumer Protection Hotline, 1-800-368-8808, or by obtaining a complaint form from Attorney General McGraw’s website at www.wvago.gov.

Source: West Virginia Attorney General