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Dell Settles Finance Claims for $3.35 Mln

Dell Settles Finance Claims for $3.35 Mln

Computer maker Dell has agreed to pay some $3.35 million to settle 34 states’ allegations that the company’s warranty, financing, and rebate offers were deceptive and misled consumers. The agreement has Dell paying $1.5 million into a restitution account; impacted consumers will be able to submit claims for compensation. The other $1.85 million will go towards the states’ legal costs.

“More than the money, this agreement provides profoundly important business practice reforms,” said Connecticut attorney general Richard Blumenthal, in a statement. “No more bait-and-switch financing—offers touting zero-interest that become surprise high-interest charges or astounding late penalties. Our strong coalition of states will closely monitor and enforce this agreement, which has been reached with Dell’s cooperation.”

Judge Finds Dell Engaged in Deception

Judge Finds Dell Engaged in Deception

Last year, New York attorney general Andrew Cuomo sued Dell Computer, alleging the company engaged in “bait-and-switch” advertising in its credit and financing advertising, and repeatedly failed to provide customers with “expedited” customer service for which they had paid. Today, New York judge Joseph Teresi agreed, ruling (PDF) the company and its affiliate Dell Financial Services engaged in fraud, false advertising, and deceptive business practices, along with abusive debt collection.

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