Thousands of Irish people could wind up holding dud cheques after they availed of a "cash back" deal run by a company now facing liquidation in Britain. Buyers of computers and ceramic tiles are among those who may be unable to reclaim the value of their purchases from Intervest Capital.
The company, based in Las Vegas but with an operation in London, ran promotions for several large manufacturers across Europe, including Apple Computers, Toyota, Honda and Canon.
Under the scheme, Intervest promises to pay back the full purchase amount, five years after the date of sale. The catch is that to get the money, purchasers must first register within 14 days of the sale, then remember to apply for their cash back within a 30 day window, five years later.
"Most people forget to claim, lose our cheque, move, and we do not remind them to claim - they must remember. Many well-known lotteries adopt the same principal - you must actually claim your prize or you forfeit it," Intervest says in a promotional Internet website.
"The promotion is backed by our net worth 1996 rating in excess of $542,000,000 (£373 million) plus reinsurance which we carry to make sure we can meet all of our obligations to those persons who correctly claim back their cash," the company continues.
In its sales pitches to Irish firms, Intervest claimed that only 5 per cent of customers actually complied with all of the conditions, and would eventually be able to cash their cheques.
On Wednesday, Britain's Department of Trade and Industry (DTI) applied to the High Court in London for the company to be wound up, and a provisional liquidator has been appointed. A full hearing has been scheduled for September 17th.
With some 300 companies operating the scheme, the move by the DTI has left thousands of people in Ireland and across Europe holding "cash back" cheques that could prove irredeemable when their five-year window arrives. Apple Computer Sales, which offered a cash back deal in July and August, said last night it was "concerned", and promised to look after more than 100 Irish customers who availed of the offer and had received their cheques.
"We have no legal obligation - the cash back deal is with Intervest, not us - but we do have a moral obligation. Our customers' loyalty is very important to us," said Mr John Mallon, the company's sales manager.
Mr Sean Kelly, of Kelly's Tileworld in Cork, which trebled sales as a result of the offer, said he had been taken by surprise by the DTI announcement. Tileworld had suspended the scheme and awaited the outcome of the hearing, he added.
Honda Motorcycle Netherlands, whose customers hold the equivalent of around £350,000 of cash back cheques after the company advertised the scheme in Dutch newspapers, said it expected an angry reaction from customers to the news their cheques were valueless.
According to Intervest's Internet website, the company also operates in Spain, Australia, Poland, Hong Kong, Singapore, Israel and South Africa.
Caplan's, the firm of London solicitors administering the registration of cheques on behalf of Intervest, said last night it had been receiving around 100 applications for cheques a day since last October. A significant number of these had come from Ireland.
"We haven't heard from Intervest," a spokesman said.
There was no response from the company's offices in London and Las Vegas last night.
