Judge finds Dell guilty of fraud and false advertising

By Justin Mann on May 27, 2008, 7:05 PM
Dell is in hot water, according to one New York Judge, after he ruled that the computer giant committed consumer fraud. The Judge decided that Dell's no-interest financing program, aimed at people looking to get computers on a loan, was actually an illegal scheme intent on making “no-interest” into “high-interest”.

The courts found that Dell along with Dell Financial Services used bad tactics to get money from people, including false advertising, abusive debt collecting and outright fraud. It wasn't a Dell customer that filed suit again Dell but rather the State. The Judge has demanded that Dell halt engaging in “illegal” business practices and now supposedly more hearings will be held to see how much money Dell is liable for. Supposedly that money will ultimately end up in the hands of consumers. Dell disagrees with the ruling, at least vaguely, despite the fact that Dell has outright admitted that they are at least partially guilty – after stating that they believed the courts would find only a “small number of customers” as actually being affected.

Small or not, even if you admit to such shameful practices even once it can harm your reputation. Dell might be better off trying to appease the people affected. The company’s longtime status as king of desktop PCs was recently lost to HP, which many have attributed to poor customer service.

User Comments: 2

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lordbf1 said:
remember Dell=Hell
Rick said:
Since I was someone who was ripped off with their financial program, I have a hard time believing it is a "handful of people".I didn't even need the finance B.S., but I was looking to build some credit and I figured opening up a new credit line for a big purchase I was about to make would have been nice. Little did I know that that my 9 months of 0% APR would be 29.99% APR (the highest allowed by law), despite my credit already being pretty good.I wasted about 4 hours of my life talking down to people who barely understood me. After talking to 3 managers, it became clear I was getting nowhere. I got a couple of small comps, but in the end, I did not get what I was supposed to get. I will never use DFS again... And with the way Dell is these days, I have a hard time really justifying their philisophy of cutting corners to give you the most computer for your money anyway.
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