Arnold Kling tells a pretty awful story about Comp-USA. I'd say, go somewhere else, which is what AK says also. So, these people, here, are crooks. Don't buy from them.

Rebates are an amazing innovation. It seems to me pretty simple, though crooked: a form of third degree price discrimination. You can't tell what a consumer's demand elasticity is at the store, so you
(a) charge an artificially high price
(b) offer a large rebate
(c) lie, cheat, and hold up the rebate process.

People with low elasticities drop out first, moderately elastic demanders try and then give up, while the highly elastic consumers scream bloody murder. You pay off the screamers. It is not as efficient as pure third degree price discrimination, of course (lots of deadweight loss from paperwork, on both ends), but it is profitable, even net of processing costs. And, of course, the bigger the rebate, the bigger the potential gains from hold-up. Check this description; pretty infuriating.

On the other hand, and in the interests of full disclosure: I just bought some phones at Nextel, and there was a $100 rebate. I stupidly threw away one of the boxes, with its UPC label. I wrote a letter, explaining I had done that. Sent it off, but assumed I would get reamed (as, in fact, I deserved to, for not following the terms of the rebate. they do need proof of purchase, and the receipt alone may not guarantee I didn't return it in the box).

Anyway, got the full rebate back from Nextel, and very quickly. So, at least some companies are playing this relatively straight. It may because I also pay monthly bills to Nextel for service on four phones, of course, but still....

I just took another gamble in the rebate parlor. Bought a cheap LCD projector, from JR.com. Supposed to be a $100 rebate. I'll let you know what happens. I'm married to an angry attorney, I'm an economist, and I'm on a mission from God. Bring it on, you bunch of mastur-rebaters! You're goin' down!