SPRINGFIELD, Ill. (AP) - Gov. Bruce Rauner has rejected legislation that would prohibit retailers from charging fees on rebate cards.
The Republican vetoed the measure Friday. It 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.
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The bill is HB4922 .
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