Lawsuit: Card isn’t cash

By Peralte C. Paul

The Atlanta Journal-Constitution

An Alabama man is suing AT&T Wireless in Fulton County Superior Court and seeking class action status for his claim that the company’s rebate practices are deceptive because it issues “cash” in the form of debit cards.

Giovanni Respinto alleges in his Oct. 2 complaint that Atlanta-based AT&T Wireless told customers in some promotions that they would get rebate checks for subscribing to certain services.

Instead, the company sent Visa debit cards, which his suit claims are not the same thing.

Peter H. Burke, Respinto’s Birmingham-based attorney, said most reasonable consumers would expect to receive a check.

“Promoting a product with cash back and then getting a debit card — cash and a debit card are not equal,” Burke said.

AT&T would not comment on the suit but said the cards, which can be activated via a toll-free number or by a designated Web site, are popular with customers.

“These cards provide real convenience and value,” said Marty Richter, an AT&T spokesman. “Many companies, including some of our competitors, use promotional cards in connection with rebates.”

AT&T and Cingular Wireless, which merged in late 2006, used to issue rebate checks but began issuing card rebates primarily in 2005 because that was more secure and convenient, he said.

The cards have no fees and typically expire after 120 days, which is generally longer than consumers have to cash rebate checks, Richter said.

“They can be spent like cash and save customers a trip to the bank,” Richter said. “You don’t need a bank account at all to use them.”

But Burke said recipients are forced to spend the money to get full use of the card and don’t have the choice of saving if they want to. On a Visa rebate card with a stored value of $40, the recipient might only be able to use $30 or $35, he said.

“The full amount is unable to be used,” Burke said. “It’s not the same as cash.”

Richter said he is unaware of any complaints but encouraged people with problems to call the toll-free number on the card.

AT&T Wireless was merged with the old Cingular Wireless after AT&T and BellSouth merged in 2006.