New York State Sues Dell In Response To Consumer Complaints

Albany (NY) - New York State is suing Dell for allegedly defrauding customers and deceptive business practices. State Attorney General Andrew Cuomo filed the lawsuit in the state’s Supreme Court and says Dell used bait and switch tactics to raise computer loan interest rates and also made customer service difficult with long wait times and frequent disconnects. Cuomo also alleges that Dell used defective refurbished parts in repairing computers.


The lawsuit targets both Dell and Dell’s financial services unit that gives out loans. Cuomo says the company offered an attractive zero percent financing rate that was then switched to a higher rate of up to 20% annually without customer knowledge.

One of Dell’s big money makers is the onsite computer repair plans that offer to send a trained technician within a certain time frame. Cuomo says Dell often ignored the terms of these plans by not sending a technician on time and subjecting customers to long phone waiting times and frequent disconnections. “At Dell, customer service means no service at all. Dell’s consumers were intentionally misled, and they had to pay for that privilege,” says Cuomo.

Cuomo says he has received more than 700 consumer complaints about Dell and is seeking restitution and civil penalties. He also wants Dell to adopt measures that would prevent such fraudulent behavior in the future. Dell has issued a written statement denying all charges.

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