NY AG Sues Dell Over 'Bait and Switch'

By Ed Oswald | Published May 17, 2007, 11:20 AM

The New York Attorney General's office sued computer maker Dell and subsidiary Dell Financial Services on Wednesday, accusing the company of "bait and switch" practices and poor customer service.

Andrew Cuomo said the state had received an "unprecedented number of complaints," totaling about 700. Most apparently revolved around Dell's financing practices.

Dell Financial Services has commonly been a target of customer ire, with its high interest rates and outsourced customer service. Several online consumer credit rights groups have cautioned members to steer clear of the company.

Cuomo's lawsuit alleges that the companies promised zero percent financing then change the rate to a higher one after the computer was purchased. As much as 85 percent of those who applied for credit never received that rate. Dell has denied any wrongdoing in the matter.

"We are confident that our practices will be found to be fair and appropriate," a Dell spokesperson said in a statement. "While even one dissatisfied customer is too many, the allegations in the AG's filing are based upon a small fraction of Dell's consumer transactions in New York."

The company says that it has sold some six million computers during the period the lawsuit covers -- 2003 and 2006, and has seen a 12 percent decline in complaints against Dell and 43 percent against Dell Financial Services with the Better Business Bureau.

Dell is also apparently conducting an audit of its own financial practices as well as a separate investigation by the Securities and Exchange Commission.

Comments

View comments by with a score of at least

If someone has such great credit to qualify for a low APR then why would they go for a store credit card instead of a Visa or Mastercard? That's just stupid. It's generally a lot harder to get a low APR on a store credit card than on a major credit card anyways.

Score: 0

|

Scumbags.

Score: 0

|

And there it is, I knew it would happen one day. Their customer service is horrid.

Score: 0

|

'A pivot from war to peace:' The AMD + Intel armistice, in their own words

An extraordinary day in technology history is recognized by two long-time rivals that mutually decided it's futile to fight anyplace else except the marketplace.

PS3, Xbox to soon get Twitter, Facebook integration

Both Microsoft's Xbox 360 and Sony's PlayStation 3 will integrate with Facebook in the near future.

Windows Marketplace for Mobile now available in browser, iTunes' App Store still not

You can now check out what Windows Marketplace for Mobile has to offer without a Windows Phone.

Microsoft damage control after marketer claims Win7 inspired by Mac

Have you ever said anything you wish you could take back? Ever? No? Not even once? Well then, you won't sympathize with a mid-level Microsoft manager today.

The Internet can still be a positive force, World Wide Web Foundation says

Sir Tim Berners-Lee's World Wide Web Foundation has launched worldwide operations.

Samsung releases another Android: where will it fit in with Bada approaching?

Samsung today announced the Galaxy Spica, sequel to its first Android handset destined for Europe and Asia.

Blockbuster's way down, but poised for a comeback

Though it took a serious beating in 2009, Blockbuster CEO Jim Keyes says the company can turn it around.

iTunes Preview doesn't go far enough to create Web-based option for store

Apple has rolled out iTunes Preview, a Web interface for browsing iTunes.

PDC 2009 Preview: The move to Office 2010 and Visual Studio 2010

The major focus of Microsoft's conference next week will likely be explaining why two pillars of its software sales strategy deserve to remain where they are.

Dell's first smartphone aids the Android onslaught

Longtime PC leader Dell has finally announced its Android-based smarphone.

After the Intel + AMD armistice: Do we really want a level playing field?

Scott Fulton On Point: One by one, the reasons for us to continue suspending the course toward open and fair competition in IT, are dropping like flies.