ALBANY -- A Web site is now available for consumers seeking restitution from Dell Inc. after a New York judge found the computer retailer engaged in false and deceptive advertising of its promotional credit financing and warranties.

The judge is ordering the computer retailer to more clearly disclose that most customers don't qualify for free financing or "next day" repair service.

Customers may apply for restitution through a Web site announced by New York Attorney General Andrew Cuomo, who pressed the case. The site is at http://www.nyagdell.com.

Cuomo is collecting complaints to help the court determine how much restitution Dell and Dell Financial Services owe customers.

Attorney General Andrew M. Cuomo today announced that his office has filed a lawsuit in Albany County Supreme Court against Dell, one of the world’s leading computer companies, and Dell Financial Services, LP (“DFS”), an affiliate that is a joint venture between Dell and CIT Bank, which offers financing to consumers for their Dell purchases. The lawsuit accuses Dell and DFS of engaging in a “bait and switch” marketing strategy and failing to provide their customers with adequate customer service. It also charges Dell and DFS with perpetuating numerous other deceptive business practices relating to their technical support services, promotional financing, rebate offers, and billing and collection activity.

Attorney General Cuomo said, “At Dell, customer service means no services at all. Dell’s consumers were intentionally misled, and they had to pay for that privilege. I hope this lawsuit sends a message to companies large and small that delivering a product is simply not enough; the promises they make must be delivered as well.”

According to papers the Attorney General filed in court, Dell deprived consumers of the technical support to which they were entitled under their warranty or service contract by:

repeatedly failing to provide consumers who purchased service contracts promising “onsite” and expedited service with timely onsite repair;

pressuring consumers, including those who purchased service contracts promising “next day onsite” repair, to remove the external cover of their computer and remove, reinstall, and manipulate hardware components;

discouraging consumers from seeking technical support; those who called Dell’s toll free number were subjected to long wait times, repeated transfers, and frequent disconnections;

using defective “refurbished” parts or computers to repair or replace consumers’ equipment.

The lawsuit accuses Dell of luring consumers to purchase its products with advertisements that offered attractive “no interest” and/or “no payment” financing promotions. In practice, however, the vast majority of consumers, even those with very good credit scores, were denied these deals. In a classic “bait and switch” scheme, DFS instead offered consumers financing at high interest rates, which often exceed 20%. Dell and DFS frequently failed to clearly inform these consumers that they had not qualified for the promotional terms, leaving many to unwittingly finance their purchase at high interest rates.

The lawsuit also alleges that DFS incorrectly billed consumers on cancelled orders, returned merchandise, or accounts they did not authorize Dell to open, and then continually harassed these consumers with illegal billing and collection activity. Although many consumers repeatedly contacted Dell and/or DFS to advise them of the errors, DFS did not suspend its collection activity and Dell failed to expeditiously credit consumers’ accounts, even after assuring consumers it would do so. As a result, many consumers have been subjected to harassing collection calls for months on end and have had their credit ratings harmed.

In filing the lawsuit, Cuomo seeks to require Dell and DFS to pay restitution to aggrieved consumers, pay civil penalties, and adopt measures to ensure that they do not engage in deceptive, illegal, and fraudulent practices in the future.

Consumers wishing to file complaints against Dell or Dell Financial Services should contact the Attorney General’s Consumer Help Line at (800) 771-7755. Consumers may also visit the Attorney General’s website at www.oag.state.ny.us or a www.NYAGDell.org.

This case is being handled by Assistant Attorney General Amy Schallop of the Consumer Frauds and Protection Bureau.

Moved to the more appropriate Computer, Tech and Other News forum.

Too bad it's for NY purchases only. Those rat bleeps at Dell said 0% on Dell Preferred Accounts, and I have impeccable credit. I applied, and they don't even tell you right then if you are denied the 0% OR that you are charged interest daily from date of PURCHASE NOT RECEIPT. And to add insult to injury, they will only take check by phone to pay off the balance in full nor waive the fees.

My mother and I both fought with them on the phone for 2 months over that bill because their followup and followthrough were so dreadfully bad. I got misinformation, incorrect forms and ignored so many times that if I could have jumped through the phone and kicked the crap out of the whole call center I would have.

We finally got it resolved after I borrowed money from my mom and grandfather and paid whatever the ridiculous check by phone fee was. I wanted to scream.

Oh yeah, that's why I haven't bought a new computer let alone a Dell since. My little computer is just fine thank you.

(That particular Dell was supposed to be for my mom who turned it down upon arrival for having no floppy drive or flat monitor. The ingrate).

I'm planning to buy dell studio 15" , now this is making me O_O