National Energy Rebate scheme

Yes, I have a very serious problem with your program, beginning with your web site which is extremely deficient in explaining your program. For example:
First: The website is not designed to fully explain the program. It is there to help someone contact us for more information and provide a basic overview of the program. We do no marketing, advertising or promoting of our website. Consumer's typically find it when they have received our brochure and a full presentation from a NERF Dealer. We do not want the website used to fully explain the program because that leaves too much room for mis-understanding. We expect, contractually demand, train and test our Dealers representatives to fully explain the program IN PERSON, provide literature, discuss slippage, provide Sample Voucher and explain the claim process at the time of estimate/sales presentation to the customer. Also, they are to complete the Consumer Checklist after explaining the program to ensure that the consumer understands the program. Further, this is all to be done at the beginning of their entire presentation, before they start explaining their own products and services. IF a consumer decides to purchase that day, they also sign the Accept/Decline Offer form which further states that they have received brochures, sample vouchers, etc., and agree to the terms and conditions. Don't you agree that this is a MUCH more reliable method of explaining and ensuring understanding by the consumer rather than HOPE that they understand the website and don't have a Trained and Tested representative there to answer and explain other questions in person?

1. What is involved in the "claim up to $21,000.00 won't you?" talked about at http://www.nationalenergyrebates.com/program.html [1]. What determines the cap? Could it be less, and why? Given that "there can be no way the fund is depleted and it is mathematically and financially sound", how could the individual not receive "up to 100%" of their rebate? (as referenced at http://www.nationalenergyrebates.com/faq.html [2])

The $21,000.00 refers to the fact that a consumer can get 3 vouchers in their lifetime and they are a maximum of $7,000.00/each......we ask if they would remember because that is an important element of any redemption program, flight fund miles, subway stamps, frequent filler gas discounts, etc.....you have to remember to claim. We have determined the cap on the number of vouchers and the amounts based on historical data, forecasted claim analysis and actual claim analysis. While we want the FREE incentive to be available and usable for a variety of products, we don't want people to start making a living off of the program as that would defeat the viability of the fund. A customer may do business with 3 different NERF vendors and receive varying amounts of rebate vouchers from each vendor. They get 3 vouchers, period. If the vouchers are less than the $7,000.00 max, they have limited their maximum available.

As far as up to 100% of face value, this refers to the "Shortfall" scenario. We place funds into the escrow account at the bank for each month. These are held in escrow and invested in Treasury Bills. Each voucher is a part of the Monthly Pool in which it was issued. All vouchers in a monthly pool are eligible to be paid out of the funds available in that monthly pool only, they can't be attached to the other 11 months. This protects the other monthly pools from ever being drawn out before the vouchers are redeemed. If the total value of claims in a pool exceeds what is in the pool, then the funds are paid to all valid claims on a pro rata basis. This means all claimants get something as a minimum and no claims end up being unpaid due to the funds being exhausted. We have NOT had a shortfall. We deposit funds, much like an insurance company, based on the forecasted claim rate. So far, we have had EXTRA funds from the monthly pools. The extra/unclaimed funds are rolled forward to the next month to be available to pay claims. The exception to that would be the Shortfall and Deferment scenario. If someone did not want to accept a pro rata payment for less than the face value, they are allowed to defer their claim until 100% is available. It would become available by using unclaimed funds from future pools. IF there were a deferred claim pending and we had unclaimed funds (as is normal to date) then instead of the unclaimed funds going forward to the next monthly pool, they are used first to pay a deferred claimant. Again, we have had no shortfalls and have no deferred claims to date. REMEMBER, any amount someone receives is all BONUS money. It is a FREE incentive program. Dealers are NOT allowed to charge for participation. So, if someone bought $10,000.00 worth of energy efficient improvements, they will get $10,000.00 worth of home improvements. If they claim properly, they could end up with $10,000.00 back in rebates and end up paying 0 for their improvements. If they only got back $3k, $4k or $6k, they are still way ahead! They are in a no lose situation!

2. Do you realize that sending in a form "after 47 months but before 48 months" (as set out at your webpage at http://www.nationalenergyrebates.com/instruct.html [3]) is technically impossible?

Again, the website is not designed to fully explain the program. The voucher clearly explains the timeframe, the Dealer representative is obliged to explain the timeframe. Basically, they wait 47 months, then have a 30 day period (before the 48th month...) to send in their claim documents. Also, the 3rd party fund administrator sends them a REMINDER letter and this specifically identifies their 30 day period to ensure they are not confused. Basically, if you were issued a voucher today, 10-25-06, your claim period is figured by adding 4 years to the date and then backing up 30 days....so you would have from 9-25-10 to 10-25-10 to claim.

3. Why do you require the form to be sent via registered mail? Why not confirm receipt via e-mail or letter?

This is for the consumers protection. Registered mail is the highest and safest form of service. It does not get lost. It is signed for by each person who touches it every step of the way, so it is fully traceable and accountable. It does not go through the electronic sorter system. It is the method used to send cash, and this is why, because of the security. This then provides documented proof for the consumer of delivery. Even if they lost their return receipt, which is required to provide at time of claim, they can go online and print a new receipt by entering the registered mail identification number. Also, by having such solid and reliable proof, the consumer is not in a situation of the FA losing their registrations and then denying the claim because it was not delivered on time or ever registered at all. Emails and other electronic means are not reliable because of worms, virus', etc. The cost of sending a return letter would become cost prohibitive. So, the safest and most secure method that protects the consumer to the highest degree seems appropriate to me, don't you agree?

4. What are the details behind the "questionnaire" that one fills out to determine their eligibility?

The Consumer Checklist is attached. Again, it is really used to ensure that they understand the program. If they don't have full understanding, I don't consider them eligible! Anyone who purchases the approved products from an approved NERF dealer is potentially eligible. However, if they don't wish to participate in the program, they are allowed to Decline the offer. There is no cost savings or discount allowed because there was NO CHARGE to begin with. This form also is attached.

5. At http://www.nationalenergyrebates.com/instruct.html [3] you refer to terms and conditions "below" yet, they are not posted on your web site. Where are they?

They are in the Sample Voucher which is provided at time of initial presentation. Further, the steps are explained by the representative.

Again, we do not feel that a website is appropriate to ensure complete understanding. Consumers may only participate when they have had a personal presentation and all documents, explanations and questions provided and answered to their total satisfaction. We know that it is to their total satisfaction because we have FOUR (4) forms that they sign and attest to the fact that they have been provided all information and understand and agree to the terms. Those are attached and identified as follows: Merchant Consumer Checklist, Merchant Accept/Decline Offer, Merchant Waiver/Receipt, the Live Voucher itself (a Sample Check provide PRIOR to purchase and then the LIVE voucher provided upon completion of the project that they SIGN and send in)

These are just a few of the questions that we have about your offer. But, frankly, any offer that gives a customer only 30 days (47 months hence) to claim the rebate suggests that you are counting upon customers to forget......and that, alone, is questionable.

Yes, we do count on consumers not claiming for a variety of reasons. We call this "Slippage", it is explained to the customer by the representative (a contractual obligation, part of the training and test) and is in our brochure and discussed on our website...such as ... "for up to $21,000.00, you will remember to claim, right?" We make no qualms about it and explain to customers that we do rely on Slippage. IT"S FREE, It's a huge BONUS. Just like your homeowners insurance or car insurance, the insurance company only charges you a small premium for what is being protected. This can only be done because not all insured clients will make a claim! The difference with us is, THIS IS A FREE incentive. The customer does not pay a premium like you do with insurance. So, if you don't claim, you don't lose anything. How much have you spent on insurance over your lifetime? How much have you collected? Since this is a FREE incentive and consumers can and do collect large amounts of money, what is questionable about that? ONLY 30 days? That seems MORE than ample time, especially with 4 years of planning and preparation, to go to the post office. Most every rebate in existence in all of time provides for no more than 30 days and most are less. If we said 3 days, I could see your point. I fail to see any issue whatsoever with an ENTIRE MONTH, really.

So, here is your start on those 5. And, much more.....please review carefully and please contact me for more information, documentation and clarification on any issues!

Thank you for taking the time to review our program. I have several documents I can fax if you provide a number. Like, a copy of the letter we get from the bank each month explaining the status, investment and how funds are released. Feel free to contact the bank to verify our escrow and how funds are released, the contact info is on the letterhead of the fax I can send.

We are working very hard to make a difference. We know that with thorough review by agencies such as yours and the BBB and with the participation of fine companies with excellent reputations, products and ethics that this Free Incentive program will gain widespread consumer participation, which is the only way we can make an effective impact in conservation! Substantial and Effective Consumer incentives are basically non-existent. The energy bill gave billions in incentives and protections to the providers, oil and gas companies, etc., but VERY little to consumers. We have to find a way to get consumers to participate. They are willing to spend more for higher efficiency products AND get more savings and value than if they had 'economized', because the free incentive program works! When they buy the more efficient, longer lasting products, they are making a wiser choice that saves them more money in the long run, ads greater value to their home and conserves America's resources. They have NOTHING to lose and a LOT to gain.