Dell Settles With Nebraska in Poor Service Suit – Get Your Share

If you have purchased a Dell notebook or desktop between April 1, 2005 January 19, 2008 Dell might owe you some money and you need to claim it before April 13.

The State Attorneys General form 34 states (including Nebraska) all settled with Dell this week over claims about misleading financing terms, lack of promised warranty service, and other violations of its customer service agreements.  Dell is creating a $1.5 million fund to pay back its customers for the failings.

The settlement also placed some additional terms on the PC manufacturing giant:

• Dell cannot report any late payments to collection agencies if a consumer has alleged that the debt is invalid and has offered documentation supporting his or her claim.
• Dell must mail rebate payments within a reasonable or specified time that is disclosed to the consumer.
• Dell must provide the States with a proper mailing address, fax number, and email address to which consumer complaints may be forwarded.
• Dell cannot claim that it provides warranty or on-site repair or technical support service unless it first clearly and conspicuously discloses that the consumer must first attempt to resolve the issue through telephone-based troubleshooting or similar activity before the consumer will receive on-site repair.
• For its Dell Credit Accounts, Dell must clearly disclose its credit terms, including that credit applications are for a revolving open credit account and that the range of annual percentage rates may increase or decrease. Dell must also disclose minimum monthly payment requirements, the mode of calculating finance charges; any and all penalties imposed for late and partial payments; and whether subsequent purchases using the Dell Credit Account will be subject to the same or different terms from any financing terms offered to the consumer as part of the financing promotion.

Attorney General Jon Bruning (LJS file)

The Texas-based company admitted no wrongdoing in the settlement and agreed to pay the State of Nebraska $46,666 to cover the state’s legal fees.

Nebraska consumers who purchased a Dell between the specified periods of time should call (800) 727-6432. Claims must be submitted by April 13.