© 2024 Peoria Public Radio
A joint service of Bradley University and Illinois State University
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

Rauner Vetoes Ban on Rebate-Card Dormancy Fees


Gov. Bruce Rauner has rejected legislation that would prohibit retailers from charging fees on rebate cards. 

The measure would have banned merchants and banks offering rebates to consumers from charging maintenance or dormancy fees. 

Rauner says so-called post-issuance fees are a way for businesses to recoup the expenses of maintaining rebate accounts until consumers use them. He says federal regulations require rebate offers to clearly explain terms and fees. 

Chicago Democratic Sen. Cristina Castro of Elgin sponsored the bill. She says Rauner sided with "big banks" over consumers. She says a rebate promised at a certain level should not be reduced by fees.  

Rauner says those offering rebates likely would disqualify Illinois consumers rather than adjust their practices.

The Associated Press is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers. AP is neither privately owned nor government-funded; instead, it's a not-for-profit news cooperative owned by its American newspaper and broadcast members.