Henkel Class Action Says Company Issues Rebate Checks that Bounce

The Dial Corporation, Henkel AG & Co. and related entities are facing a class action lawsuit alleging it fraudulently offers rebates to entice consumers into purchasing products but issues rebate checks drawn from a bank account which had been deliberately closed, causing consumers to be faced with bounced check fees.

Plaintiff John Sacchi of New Jersey says he was enticed by Henkel to purchase Right Guard Xtreme Precision Dry Spray Antiperspirant because he noticed a sign promising the product would be free if he submitted a rebate form. According to the Henkel class action lawsuit, Sacchi purchased the product and mailed the rebate form to Henkel.

In May 2017, Sacchi says he was mailed a rebate check from Henkel in the amount of $5.49. The rebate check was reportedly drawn from an account with the Alliance Bank of Arizona. Sacchi says he deposited the Henkel rebate check at a Wells Fargo branch.

According to the Henkel rebate check class action lawsuit, the rebate check was returned “unpaid” because the check had been drawn on a closed account. Wells Fargo imposed on Sacchi a $12 “returned deposit item fee,” which is reportedly a prevailing banking practice that is also stated in Wells Fargo’s account agreement.

Henkel has reportedly not responded to Sacchi’s concerns or offered compensation even though he sent the company a draft of the rebate check fraud class action lawsuit in the spring.

Sacchi claims that Henkel has continued to entice consumers to try the item, and has extended the free with rebate offer until Sept. 15, 2017. He is concerned that numerous other consumers may fall victim to Henkel’s rebate check fraud in the meantime.

“Henkel has apparently perpetrated consumer rebate fraud upon thousands of consumers as, upon information and belief, Consumer’s check was not the sole item written on the ‘Closed Account’ at the Alliance Bank of Arizona,” the class action states.

Sacchi accuses Henkel of soliciting purchases of certain products by falsely promising consumers that they will receive a valid rebate check in the mail. However, Henkel knowingly issues worthless rebate checks that are drawn on a bank account that it knowingly closed, leaving many consumers who had assumed the checks would be valid to be faced with bank fees that often exceed the promised amount of the rebate check.

The Henkel class action lawsuit seeks to represent Sacchi and a Class of individuals who, within the last six years, received a rebate check from Henkel that was returned “unpaid” by the bank in which it was deposited. Although Sacchi doesn’t know the exact number of Class Members, he estimates that there are likely thousands of consumers throughout the nation who would be eligible.

Sacchi asserts claims for conversion, fraud, breach of contract, and violation of the New Jersey Consumer Fraud Act. The Henkel rebate check fraud class action lawsuit seeks statutory damages, compensatory damages, punitive damages, restitution, disgorgement, injunctive relief, prejudgment interest, attorneys’ fees and costs, and other relief deemed proper by the court.

Sacchi is represented by Stephen J. Simoni.

The Henkel Bounced Rebate Checks Class Action Lawsuit is John Sacchi v. Henkel AG & Co., Case No. 3:17-cv-04889, in the U.S. District Court for the District of New Jersey.