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Court Finds Dell Guilty Of Customer Fraud

May 28, 2008 8:02 a.m. EST

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Jupiter Kalambakal - AHN News Writer

New York, NY (AHN) - Tech company Dell was found guilty Tuesday of customer fraud, with the court ruling against the corporation on charges of false advertising, debt collection abuse, and dishonest business dealings.

The Supreme Court in Albany County condemned the computer and electronics manufacturer of crimes against hundreds of Dell customers who claimed the company misled them into buying its products, using lures such as promotions and other similar deals.

In 2007, New York State Attorney General Andrew Cuomo filed charges against the computer maker, alleging Dell promised low interest rates upon purchase of its products - a promise that the company reportedly never delivered.

The ruling by Supreme Court Justice Joseph C. Teresi found Dell guilty of the charges, including "failure to provide warranty service and rebates," according to CNN.

The corporation was also sued for deprivation of technical support for customers, instead advising buyers to perform the needed repairs themselves, or putting them on hold for long periods over the phone.

Dell had also allegedly refused customers service after contracts expired, despite the fact that the problems were known before the agreements ended, according to PC World.

The Round Rock, Texas-based company's Dell Financial Services unit had also allegedly billed from cancelled transactions and used harassing tactics.

Dell disagreed with the ruling, saying the number of affected customers was inflated.

Damages had not yet been determined by the court.



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