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Dell hit with $4M bill in New York fraud case

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Dell has reached a settlement with New York Attorney General Andrew Cuomo, agreeing to pay the state $4 million to resolve charges of false advertising, fraud and deceptive business practices.

The agreement follows the May 2008 decision of the New York Supreme Court of Albany County to uphold Cuomo's lawsuit against the PC giant and its financial services arm.

Cuomo's lawsuit accused Dell of running a "bait and switch" financing scheme, widely promoting zero-interest payments while actually saddling the majority of customers with steep rates. The result was that many Dell customers, some with superb credit, unknowingly signed up for payment plans with interest rates sometimes in excess of 20 percent.

Other aspects of the complaint turned on Dell's service agreements and billing practices.

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