Dell Committed Consumer Fraud, N.Y. Judge Rules

Customers lured into no-interest or no-payment financing were denied and offered high-interest loans that often exceeded 20% instead.
By Antone Gonsalves May 27, 2008

A New York state judge on Tuesday found that Dell (Dell) offered consumers no-interest financing for computers as part of an illegal scheme to lure them into high-interest loans. State Supreme Court Justice Joseph C. Teresi decided that Dell and Dell Financial Services engaged in fraud, false advertising, deceptive business practices, and abusive debt collection practices, said the N.Y. State Attorney General's Office, which filed the lawsuit in May 2007. DFS is a joint venture between Dell and CIT Bank. In his ruling, Teresi barred Dell and DFS from engaging in illegal business practices cited in the suit. The court will hold further hearings to determine restitution to consumers and the amount of profits Dell unlawfully earned that will be forfeited to the state. N.Y. Attorney General Andrew M. Cuomo said that Dell's and DFS' actions were "a bait and switch that left thousands of people paying for essentially no service at all."

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