Special offer
Home > Blogs > Diana Manzato > Diana Manzato's (djmanzato) Blog
bookmark_border

Cash Rewards INC is Bankrupt! Incentives Can Bite You!

By
Services for Real Estate Pros 0531694 inactive

Agents and Brokers, if you haven't already heard this news and you've given a Cash Reward (trademarked) to clients, be prepared for a phone call!

Touted as a method of attracting a larger number of buyer & seller prospects causing an increase in revenue and a recurring stream of customers, the company is now in bankruptcy court claiming there is no money left to payout to clients.

The Cash Rewards program gave customers up to $ 10,000 in cash rewards (kind of like a rebate with a 3 year waiting period) on products ranging vehicles to homes or did they?  According to many complaints registered on complaintsboard.com, the company found many reasons to NOT pay out to customers that deserved the payout.  This Cash Reward (trademarked) also was given to real estate agents as an incentive to sell the listing agent's properties that the team had for sale.

Now, I'll have to explain to my past clients that they will have to make a claim for their money in bankruptcy court at the Cash Rewards, Inc. creditors meeting. 

In short, watch what you give to customers as an incentive because the incentive can bite you and it won't feel like it's coming from this puppy!
incentives can bite

Show All Comments
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Cute pup....who can you trust anymore?  If you are giving an incentive it should happen at closing to prevent this.

Sep 23, 2009 02:11 AM
Chanda Barrick
Keller Williams Indy Metro Northeast - Indianapolis, IN
in referral

That pup is so doggone cute it doesn't make any sense...I've never heard of Cash Rewards, have they been around long?  A $10,000 payout seems like an awful lot of money, how in the world would something like that work? 

Chanda panda

Sep 23, 2009 02:25 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

I looked into the Cash Rewards program several years ago, and I never liked how it was run.  No one could ever answer my questions to my satisfaction, and I knew something like this would blow up in their faces sooner than later!

Too bad for the customers and clients, but they're receiving something for free.  It's the agents and the mortgage people who paid into the program who should fight to get their money back.

Sep 23, 2009 02:29 AM
Diana Manzato
Highland Village, TX

Basically the Cash Rewards program worked like a rebate.  An agent offered, for example a buyer, a $5000 Cash Reward when closing on their home as an incentive to allow the agent to represent them in a transaction.  At closing, the buyer was given a certificate with instructions on how to claim their $5,000 at the end of a 3 year waiting period. 

The buyer's agent paid 20% of the Cash Reward at closing out of their commission which was sent to the Cash Reward company.  The company was supposed to hold those funds in escrow, if you will, for payouts -- like an insurance company or a rebate.  They worked on the premise that people would forget or not follow their strict rules on claiming their funds.

Unfortunately, the owner allegedly spent the money thus claiming bankruptcy.

Sep 23, 2009 03:00 AM
Chanda Barrick
Keller Williams Indy Metro Northeast - Indianapolis, IN
in referral

Hmmm, that's an interesting concept.  I was wondering how that would work as far as taxes go and gifting regulations now it makes sense.  Thanks for explaining how it works.  :)

Sep 23, 2009 08:42 AM
Diana Manzato
Highland Village, TX

On June 10, 2009, the company filed for bankruptcy under Chapter 7 of the federal Bankruptcy Act.

It might be too late to place a monetary claims against the company, but you can contact the number or address below to find out the details.

 

Texas Northern Bankruptcy Court CM/ECF

1100 Commerce Room 1254

Dallas, TX, 75242  

 

Case # 09-33685

 

Bankruptcy Clerk's office #214-753-2000

 

I also felt very ‘ripped off’, as the real estate team that I was a part of really pushed agents to offer these to clients, of which I had to pay the team lead 50% of the cost of the Cash Reward, straight out of my commission.

 

Diana Manzato

Broker Associate

Coldwell Banker RES

Direct:  (469) 231 8324

Fax:       (214) 550 5055

<!--[if gte vml 1]><v:shapetype id="_x0000_t75" coordsize="21600,21600" o:spt="75" o:preferrelative="t" path="m@4@5l@4@11@9@11@9@5xe" filled="f" stroked="f"> <v:stroke joinstyle="miter" /> <v:formulas> <v:f eqn="if lineDrawn pixelLineWidth 0" /> <v:f eqn="sum @0 1 0" /> <v:f eqn="sum 0 0 @1" /> <v:f eqn="prod @2 1 2" /> <v:f eqn="prod @3 21600 pixelWidth" /> <v:f eqn="prod @3 21600 pixelHeight" /> <v:f eqn="sum @0 0 1" /> <v:f eqn="prod @6 1 2" /> <v:f eqn="prod @7 21600 pixelWidth" /> <v:f eqn="sum @8 21600 0" /> <v:f eqn="prod @7 21600 pixelHeight" /> <v:f eqn="sum @10 21600 0" /> </v:formulas> <v:path o:extrusionok="f" gradientshapeok="t" o:connecttype="rect" /> <o:lock v:ext="edit" aspectratio="t" /> </v:shapetype><v:shape id="Picture_x0020_1" o:spid="_x0000_i1025" type="#_x0000_t75" alt="facebookBadgesmall" href="http://facebook.com/djmanzato" style='width:75.75pt; height:63pt;visibility:visible;mso-wrap-style:square' o:button="t"> <v:imagedata src="file:///C:\Users\Diana\AppData\Local\Temp\msohtmlclip1\01\clip_image001.png" o:title="facebookBadgesmall" /> </v:shape><![endif]--><!--[if !vml]-->facebookBadgesmall<!--[endif]-->

Feb 08, 2011 05:44 AM
Back to Top
Rainer
119,237

Diana Manzato

Profile
Blog
smartphone(469) 231-8324
Contact The Author

Service Areas

  • Highland Village, TX
  • Denton County, TX

Real Estate Resources

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?