Attorney General Corbett announces distribution of more than $92,000 in Dell refunds to PA consumers

By THE OFFICE OF ATTORNEY GENERAL TOM CORBETT

HARRISBURG — Attorney General Tom Corbett today announced that refund checks totaling more than $92,000 have been sent to nearly 300 Pennsylvania residents as the result of a multi-state consumer protection agreement with Texas-based Dell, Inc., (“Dell”) and its subsidiary, Dell Financial Services L.L.P. (“DFS”).

Corbett said the case was triggered by numerous complaints from consumers who believed they were purchasing Dell products with zero percent promotional financing, or other low-interest offers, only to discover that they were charged much higher rates because they failed to qualify for the promotional offer. Consumers also complained that they never received their promised rebates and that Dell failed to honor warranties when they had problems with their computers.

As a result of the settlement agreement, Dell was required to pay restitution to eligible consumers who filed claims involving purchases made between April 1, 2005, and April 13, 2009.

Corbett said that 290 Pennsylvania consumers will be receiving a total of $92,073. The average payment is approximately $300, though several consumers are receiving in excess of $1,000 and the largest Pennsylvania restitution check totals $2,082. All consumers should receive their checks within a week.

Corbett said the refund amounts are based on the cost of finance charges, fees that consumers paid for services Dell failed to provide and other fees they were forced to pay.

In addition to paying restitution to consumers, the consumer protection agreement requires Dell to provide clear information to consumers about all future promotions. The settlement also requires the company to ensure that rebates are provided in a timely manner and to be more responsive to consumers when they have warranty issues with their Dell computers.

“Financing rates, rebates and other promotional offers have a major impact on consumers’ decisions about whether or not to make a purchase, or how much they intend to spend,” Corbett said. “Companies have a responsibility to clearly inform consumers about whether or not they qualify for special promotional financing offers so that there are no surprises when bills arrive.”

Corbett said that Dell is also required to implement written policies to ensure compliance with the settlement, including procedures that address issues such as:

Informing consumers of their right to cancel orders made with the Dell Credit Account within three days after receiving final credit approval and the written terms and conditions.
Communication between Dell and Dell Financial Services when a consumer returns a product purchased with credit.
Removing consumer accounts from collection agencies and providing accurate information to credit-reporting bureaus.
Substantiate any claims Dell makes about the quality of its customer service. Dell can use the term “award-winning” to describe its customer service only if the company received such an award within the past 18 months.
Implement a complaint resolution process specifically for consumer complaints filed with the Offices of Attorneys General to ensure those consumer complaints filed against Dell are addressed promptly and efficiently.
Consumers with complaints involving promotional financing offers, rebates, warranties, repair services or other problems – involving Dell or any other company – are urged to call the Attorney General’s Consumer Protection Hotline, at 1-800-441-2555, or file an online consumer complaint by visiting the Attorney General’s website at www.attorneygeneral.gov

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