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The Attorney General of New York filed a lawsuit in the state Supreme Court yesterday accusing Dell Inc. and Dell Financial Services LP of consumer fraud and false advertising.
In his complaint, Attorney General Andrew Cuomo claims that Dell drew customers in with a “bait and switch” scheme, offering zero percent financing but then switching to higher rates at the point of purchase. Customers were not informed of the rate change.
Cuomo stated that as few as 15 percent of those who apply for Dell’s zero percent financing actually receive that rate. One customer said that Dell offered him zero percent financing for six months but later told him he was obligated to pay a rate of 29 percent.
The customer, who had paid off the $1,500 computer in six months, was baffled by the increase in rate.
“Why did I not qualify for promotional financing? I own my own home, always pay my bills on time,” he said.
According to Cuomo, an “unprecedented number of complaints against Dell, approximately 700” had been received by his office.
In addition to complaints of false advertising, Dell is also accused of failing to deliver on its onsite computer repair service. Some customers report being required to disassemble their own computers.
The lawsuit is seeking unspecified damages for affected customers.
“We want fairness. Either provide the customer services packages that you sell or don’t sell the packages,” Cuomo said.
(Source: Seattle Post-Intelligencer)
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Consumer fraud class action lawsuits are specifically designed to help individuals who have been similarly aggrieved to pursue a common goal – namely to hold the deceptive business accountable for any damages suffered. Thus, consumers who have been defrauded by a corporation or other entity may file a consumer fraud class action lawsuit on behalf of themselves and others to seek compensation for their shared grievance.
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