NY State judge convicts Dell of fraud
May 28th, 2008 joshua
A New York state judge ruled against consumer computer giant Dell Tuesday, ruling the company committed fraud when it duped consumers into high-interest loans.
The judge says Dell lured customers with a promise of no-interest financing only to get them into high-interest loans. He said this practice is deceptive. Dell is undecided whether it will appeal the decision.
Dell and Dell Financial Services engaged in fraud, false advertising, deceptive business practices and abusive debt collection practices, according to the NY State Attorney General’s office.
A further hearing will determine financial restitution for consumers.
NY State AG Andrew Cuomo said “We have won an important victory that will force Dell to live up to its responsibilities and pay back its customers for profits that were pocketed but not deserved.
Only a select few New Yorkers ended up being eligible for the no-interest financing offered by Dell, and others were offered a loan with interest percentages over 20.
The AG’s office filed the lawsuit in May 2007.
