Mike FrerichsAre you due a rebate from Sprint? A lawsuit from the state treasurer seeks to reclaim that money.

Illinois Treasurer Michael Frerichs is suing telecommunications giant Sprint to recoup an estimated $2.7 million he says is owed to about 32,000 residents who purchased a service or a product but did not receive the rebate that incentivized the sale, according to a news release Tuesday.

According to the treasurer’s office, a contract between Sprint and its clearinghouse partner, Minnesota-based Young America Corp., says the clearinghouse draws rebate checks from its bank account while Sprint advances the funds to cover the rebate.

The value of the uncashed rebate check, known as “slippage,” is kept by Young America, allowing slippage to be considered when negotiating contract terms.

“It is frustrating and wrong when these large companies with deep pockets and corporate attorneys break their promises, keep money that is not theirs, and dare people to file a lawsuit,” Frerichs said in a statement.

Sprint had rejected settlement offers from the state despite agreeing to similar settlements with other states, the release says. The lawsuit states the purchases in question were made between 2003 and 2005.

In a statement to Illinois Radio Network, Sprint denies the allegations stating: “This lawsuit is not about rebates that were withheld, but about rebate checks that were sent but not cashed.”

“We do not believe the claims against Sprint have merit, and we will continue to seek a fair resolution in our settlement discussions with Illinois,” the statement said.


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