HARRISBURG - A settlement between the Pennsylvania Treasury and Parago Inc. will make nearly $2 million in unclaimed promotional rebates from past retail purchases available to consumers, state Treasurer Rob McCord announced this week.
Parago is a Texas-based company that processes and pays promotional rebates to consumers on behalf of national consumer product manufacturers, retailers and telecommunication service providers. Its clients include Staples, Home Depot, Verizon and Verizon Wireless, and General Electric, among others.
The unclaimed rebates were the result of what is termed "retained slippage" in the industry. When rebates were unclaimed, Parago routinely retained those funds, in exchange for which it offered its clients - referred to as "downstream companies" - a discount on processing fees.
In some cases, unclaimed rebates were returned to downstream companies, but McCord noted his department intends to pursue those funds, too, on behalf of Pennsylvania's citizens.
Under the terms of the settlement agreement, Parago will report $1.95 million in rebates to Treasury's Bureau of Unclaimed Property in installments over the next three years. Parago will accompany each installment with a report that includes the names of persons owed rebates, their last known address, a description of the property and when it became available, and a record of Parago's last attempted interaction with the rightful owner.
The agreement also stipulates Parago will continue to report property to Pennsylvania annually in accordance with the state's unclaimed property law. The company will also consent to a state audit if it fails to make such a report by the annual April 15 deadline.
Those who believe they may be owed a rebate from Parago or one of its clients should call 1-800-222-2046 from 7:30 a.m. to 4:30 p.m. Monday through Friday.