Dell faces New York suit over consumer complaints - Sitcoms Online Message Boards

catlover79 · 05-16-2007, 01:02 PM

NEW YORK (Reuters) - New York State Attorney General Andrew Cuomo has sued Dell Inc. over consumer complaints against the computer maker, contending that the company engaged in deceptive financing practices.

The suit, filed in New York state court in Albany, accuses Dell and its financial services unit of misleading customers with enticing financing offers that carry many restrictions and limitations. Cuomo's office wants an injunction against Dell's practices, and unspecified damages to affected customers.

Investors shrugged off the lawsuit, with shares rising 64 cents, or 2.6 percent, to $25.31 in morning Nasdaq trade.

The announcement of the lawsuit came as "something of a relief following widespread rumors" on Tuesday that the impending statement from Cuomo's office could have represented a widening of existing regulatory probes into the company's accounting, Goldman Sachs stock analyst Laura Conigliaro wrote in a research note to clients.

In the lawsuit, the New York attorney general said that consumers "who purchase Dell's products often find that many of the benefits and inducements featured in Dell's advertisements are illusory."

Dell spokesman Bob Pearson said Dell would vigorously defend itself and was confident that its practices will be found to be fair and appropriate.

The lawsuit was filed on Tuesday, Cuomo's office said. The complaint says that while Dell offers promotions such as a "no-interest" period of financing to computer buyers, the company uses "ultra-restrictive underwriting guidelines" that prohibit the vast majority of consumers, even those with excellent credit records, from qualifying.

Dell then offers many of those who are denied the promotional financing the regular plan under which consumers receive an open line of credit at interest rates that often exceed 20 percent, the lawsuit said.

"Our customers are our top priority at Dell," Pearson said. "While even one dissatisfied customer is too many, the allegations in the AG's filing are based upon a small fraction of Dell's consumer transactions in New York."

Conigliaro said Dell had been taking steps to improve its customer service.

"The suggestion that Dell set out to intentionally deceive consumers, as the lawsuit contends, does not ring true with the reality that Dell has been in the process of adding resources to its services capability," she said in her research note.

The lawsuit comes as investors are beginning to think Dell's problems with securities regulators are winding down, Conigliaro said.

The company said in August 2006 that the U.S. Securities and Exchange Commission and federal prosecutors were investigating its past accounting. In March, Dell said an internal financial audit found evidence of misconduct, accounting errors and deficiencies in its financial controls.

Big businesses cheating the consumer??

Say it ain't so!!

TripperFan · 05-16-2007, 01:08 PM

I don't know what Cuomo is complaining about. I don't find Dell any different from any other computer manufacturer with their pricing - or especially the automotive industry. It kills me to see a car ad and they say it's going to cost say $300/mon - it NEVER ends up that amount. They claim those amounts on basic models only, with a certain amount in downpayment, etc., and also then in tiny print mention the tax, licensing, tire taxes, and all the other "hidden" costs. I've yet to see anyone take home anything at the price given in a commercial.

We never had that problem with Dell with either our home computers or the Dell's my husband buys for his company.

Seems to me there's more to this story.

TJL · 05-16-2007, 01:37 PM

Somehow i think the Dell Dude is responsible.

catlover79 · 05-16-2007, 01:58 PM

Quote:

Originally Posted by TJL

Somehow i think the Dell Dude is responsible.

Wasn't he arrested on drug charges a few years back? Figures.

Jrnygrl · 05-16-2007, 11:12 PM

Quote:

Originally Posted by TripperFan

I don't know what Cuomo is complaining about. I don't find Dell any different from any other computer manufacturer with their pricing - or especially the automotive industry. It kills me to see a car ad and they say it's going to cost say $300/mon - it NEVER ends up that amount. They claim those amounts on basic models only, with a certain amount in downpayment, etc., and also then in tiny print mention the tax, licensing, tire taxes, and all the other "hidden" costs. I've yet to see anyone take home anything at the price given in a commercial.

We never had that problem with Dell with either our home computers or the Dell's my husband buys for his company.

Seems to me there's more to this story.

I agree, love my Dell!

Chelsea · 05-17-2007, 12:28 AM

I've owned two laptops by Dell and a Desktop.

First laptop, total garbage, but it was a budget model. Got a new one a YEAR later, from an upper-mid-level product line. Two years fine, and now it's doing the same things the first one did.

I'll NEVER own another Dell laptop.

Desktop is fine and a quality machine, so far. Except for the power button on the monitor - but they recognized the problem in the product line at some point, because on models of this monitor made after mine they changed the design of the button to prevent the problem.

TripperFan · 05-19-2007, 11:13 AM

Quote:

Originally Posted by Seth

I've owned two laptops by Dell and a Desktop.

First laptop, total garbage, but it was a budget model. Got a new one a YEAR later, from an upper-mid-level product line. Two years fine, and now it's doing the same things the first one did.

I'll NEVER own another Dell laptop.

Desktop is fine and a quality machine, so far. Except for the power button on the monitor - but they recognized the problem in the product line at some point, because on models of this monitor made after mine they changed the design of the button to prevent the problem.

What was the issue with the laptop? I did have problems for a while with a key repeating and the curser running wild with it across the screen. Dell replaced the keypad and board twice on it no questions asked, but it still did it. Finally my tech support figured out the problem - it wasn't a hardware issue at all - something in the software was corrupt and they just stripped and reinstalled and it worked fine after that.
Yeah, NEVER have had a problem with the desktop. After 6 or 7 years now we're thinking of upgrading it but even at that, it's not all that bad. Love my Dell!

(Don't get me started on Gateways tho - now THAT'S a piece of garbage!)

tdf4077 · 05-20-2007, 11:23 AM

I've had so many problems w/my dell the past month, it's not even funny. that's why i kinda disappeared off here...every 15-20 mins, I'd get a blue screen error where I couldn't do anything but turn off the computer. Then, I'd have to go into safe mode and restore my computer to an earlier date. Then, I couldn't even get an internet connection. I called them 3 times, and they did various things, but nothing helped. Yesterday, it gave me a new error: Fatal Hard Drive error! So, I had to restore my computer all the way back to date of purchase, deleting my hard drive!

But when it works, I love my Dell lol.

TheLandfordLunchBox · 05-20-2007, 10:18 PM

I currently have a Dell Desktop and i did at one time have a Dell laptop it was one of the cheaper ones and at first it was a good computer then something happened to it and we complained to management and received a new one of the same model and again we had problems. So we ended up sending it back for them to recycle.

AB · 05-21-2007, 03:26 PM

I have a Dell Desktop too and it works fine most of the time. Luckily I have a friend who is great at fixing it when I do run into problems.

05-16-2007, 01:02 PM	#1
catlover79 God Bless Val Forum Addict Join Date: May 29, 2006 Location: Bewitched in Ohio Posts: 70,392	Dell faces New York suit over consumer complaints NEW YORK (Reuters) - New York State Attorney General Andrew Cuomo has sued Dell Inc. over consumer complaints against the computer maker, contending that the company engaged in deceptive financing practices. The suit, filed in New York state court in Albany, accuses Dell and its financial services unit of misleading customers with enticing financing offers that carry many restrictions and limitations. Cuomo's office wants an injunction against Dell's practices, and unspecified damages to affected customers. Investors shrugged off the lawsuit, with shares rising 64 cents, or 2.6 percent, to $25.31 in morning Nasdaq trade. The announcement of the lawsuit came as "something of a relief following widespread rumors" on Tuesday that the impending statement from Cuomo's office could have represented a widening of existing regulatory probes into the company's accounting, Goldman Sachs stock analyst Laura Conigliaro wrote in a research note to clients. In the lawsuit, the New York attorney general said that consumers "who purchase Dell's products often find that many of the benefits and inducements featured in Dell's advertisements are illusory." Dell spokesman Bob Pearson said Dell would vigorously defend itself and was confident that its practices will be found to be fair and appropriate. The lawsuit was filed on Tuesday, Cuomo's office said. The complaint says that while Dell offers promotions such as a "no-interest" period of financing to computer buyers, the company uses "ultra-restrictive underwriting guidelines" that prohibit the vast majority of consumers, even those with excellent credit records, from qualifying. Dell then offers many of those who are denied the promotional financing the regular plan under which consumers receive an open line of credit at interest rates that often exceed 20 percent, the lawsuit said. "Our customers are our top priority at Dell," Pearson said. "While even one dissatisfied customer is too many, the allegations in the AG's filing are based upon a small fraction of Dell's consumer transactions in New York." Conigliaro said Dell had been taking steps to improve its customer service. "The suggestion that Dell set out to intentionally deceive consumers, as the lawsuit contends, does not ring true with the reality that Dell has been in the process of adding resources to its services capability," she said in her research note. The lawsuit comes as investors are beginning to think Dell's problems with securities regulators are winding down, Conigliaro said. The company said in August 2006 that the U.S. Securities and Exchange Commission and federal prosecutors were investigating its past accounting. In March, Dell said an internal financial audit found evidence of misconduct, accounting errors and deficiencies in its financial controls. Big businesses cheating the consumer?? Say it ain't so!!
	__________________ "Jesus loves you and He approves this message." "I'm alive. I'm feeling good. I'm trying to live every moment as much as I can." - Valerie Harper, March 2013

05-16-2007, 01:08 PM	#2
TripperFan In God's Arms Now Forum Star Join Date: Sep 14, 2003 Location: Heartbreak Ridge Posts: 12,086	I don't know what Cuomo is complaining about. I don't find Dell any different from any other computer manufacturer with their pricing - or especially the automotive industry. It kills me to see a car ad and they say it's going to cost say $300/mon - it NEVER ends up that amount. They claim those amounts on basic models only, with a certain amount in downpayment, etc., and also then in tiny print mention the tax, licensing, tire taxes, and all the other "hidden" costs. I've yet to see anyone take home anything at the price given in a commercial. We never had that problem with Dell with either our home computers or the Dell's my husband buys for his company. Seems to me there's more to this story.
	__________________ If I don't see you in this world, I'll meet you in the next one.....don't be late James Marshall Hendrix Voodoo Chile The Forum Legend formerly known as TripperFan "religion is for people who are afraid of hell--spirituality is for people who have been through hell"---anonymous

05-16-2007, 01:37 PM	#3
TJL Suburbanite Extrordinaire Forum Star Join Date: Dec 29, 2001 Location: New Jersey - the cradle of civilization Posts: 16,588	Somehow i think the Dell Dude is responsible.
	__________________ "I think I'll stroll up to the front to see how the shooting's going..." - Capt. Benjamin Franklin "Hawkeye" Pierce Read my blogs! http://centralparkamisguide.com/ http://dvdcriticscorner.com Visit me on Facebook!http://www.facebook.com/profile.php?id=641138880 Hey, I do the tweet thing too! http://twitter.com/TomLevier My shop of handmade items! http://www.etsy.com/shop/ColdGarageCreations

05-17-2007, 12:28 AM	#6
Chelsea Semi-retired Forum Veteran Join Date: Jan 07, 2001 Location: Washington Posts: 5,727	I've owned two laptops by Dell and a Desktop. First laptop, total garbage, but it was a budget model. Got a new one a YEAR later, from an upper-mid-level product line. Two years fine, and now it's doing the same things the first one did. I'll NEVER own another Dell laptop. Desktop is fine and a quality machine, so far. Except for the power button on the monitor - but they recognized the problem in the product line at some point, because on models of this monitor made after mine they changed the design of the button to prevent the problem.
	__________________ Chelsea Former Administrator, 2005-2012 Former Member, DVD Review Team, 2004-2010.

05-20-2007, 11:23 AM	#8
tdf4077 JaJa Senior Member Join Date: Jan 17, 2006 Location: Ohio Posts: 1,678	I've had so many problems w/my dell the past month, it's not even funny. that's why i kinda disappeared off here...every 15-20 mins, I'd get a blue screen error where I couldn't do anything but turn off the computer. Then, I'd have to go into safe mode and restore my computer to an earlier date. Then, I couldn't even get an internet connection. I called them 3 times, and they did various things, but nothing helped. Yesterday, it gave me a new error: Fatal Hard Drive error! So, I had to restore my computer all the way back to date of purchase, deleting my hard drive! But when it works, I love my Dell lol.
	__________________ CSC--The Best Cycling Team in the World!!

05-20-2007, 10:18 PM	#9
TheLandfordLunchBox Heath Ledger 1979-2008 Forum Regular Join Date: Apr 28, 2005 Location: At the Haunted Manion in Walt Disney World Posts: 668	I currently have a Dell Desktop and i did at one time have a Dell laptop it was one of the cheaper ones and at first it was a good computer then something happened to it and we complained to management and received a new one of the same model and again we had problems. So we ended up sending it back for them to recycle.

05-21-2007, 03:26 PM	#10
AB Member Eternal Member Forum Icon Join Date: Dec 26, 2006 Location: The South Posts: 59,428	I have a Dell Desktop too and it works fine most of the time. Luckily I have a friend who is great at fixing it when I do run into problems.