New York Judge Says Dell Misled Customers

A New York judge ruled that Dell and its financial services unit falsely advertised financing and warranty terms to customers.

In an opinion released Tuesday, State Supreme Court Justice Joseph Teresi said that Dell and Dell Financial Services LP engaged in deceptive business practices, fraud, false advertising and abusive debt collection.

"Dell has engaged in repeated misleading, deceptive and unlawful business conduct, including false and deceptive advertising of financing promotions and the terms of warranties, fraudulent, misleading and deceptive practices in credit financing and failure to provide warranty service and rebates," the judge wrote.

New York Attorney General Andrew Cuomo filed suit against Dell in 2007, claiming the company misled customers to increase sales. The court will hold further hearings to determine how much Dell will have to pay as a result of the suit.

Teresi ruled that Dell denied customers technical support they were entitled to by failing to provide timely repairs and by pressuring consumers to make their own repairs. The decision also sayid Dell failed to provide customers with promised rebates.

A Dell spokesperson said the company will comment on the suit once its attorneys have had a chance to completely review the decision.

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