Cash Back Ad Sales Cash-back ads are a newer variation on the cash advance loan theme. Companies claim that the customer is purchasing a service and they are charging a fee for that service. Even if a customer has nothing to advertise the company will still insist upon an ad purchase, and place the ad in some type of publication. Each time a customer wants to renew the loan the company charges an additional ad fee and places another ad in the publication. Most customers do not actually try and sell anything for their ad payment.
Ads typically contain personal greetings, are sometimes nonsensical and often unsigned.
Today in Texas News is not listed alongside the Greensheet in the Yellow Pages under advertising directories or newspapers-the place most people might look if they actually wanted to buy or sell personal goods via a real advertisement. Two weeks later the company cashes the check and gives the customer the certificate, at which time they can use the certificates to purchase merchandise from the catalog. The terms of the loans are similar to the other cash advance loan terms, however the catalog sales companies we spoke with did not allow extensions for new customers and did not take applications over the phone. Consumers Union found four companies of the 27 total surveyed that sell catalog certificates. The companies were identified through OCCC customer complaints.