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Dell Reaches $3.35M Settlement on Customer Service Practices

Dell Inc. has reached a $3.35M settlement agreement with the attorneys general of 34 states, to resolve charges that the Texas-based computer giant engaged in deceptive customer service practices related to financing promotions, warranties, and rebates.

Under the agreement, Dell will pay $1.5M into an account from which customers will be able to receive restitution for problems with Dell products and services (if they file a claim within 90 days), and the company will also pay $1.85M to each state involved in the settlement. According to the Connecticut Attorney General, Dell has also agreed to act with more fairness and transparency in its customer relations, by providing "clearer and more conspicuous advertisements and disclosures to consumers about financing terms and warranty services, prompter rebates and more intense efforts to resolve consumer complaints." Reuters reports that Dell is alleged to have "engaged in 'deceptive' financing promotions, promising zero-percent financing but charging [customers] higher rates. In addition, consumers said they failed to receive promised rebates and had trouble getting warranty service."

To find out whether your state is part of the Dell settlement agreement, and for detailed information on filing a claim in time for the 90-day deadline, contact the office of your state attorney general.

• Connecticut AG: $3.35 Million Multi-State Settlement With Dell For Customer Service Failures
• Washington AG: Attorneys General Reach Deal to Debug Dell's Customer Service
• Reuters: Dell Settles State Consumer Protection Claims
• Contact Your State Attorney General (National Association of Attorneys General)
• State Consumer Protection Offices (FindLaw)
• Know Your Rights: The Consumer Action Handbook (FindLaw)
• Consumer Issues: Articles, FAQ, and More (FindLaw)

Full post as published by FindLaw's Common Law on January 13, 2009 (boomark / email).