Dell Financial Services - improper bait-and-switch practices

Discussion in 'Dell' started by Lon Lowen, Feb 21, 2004.

  1. Lon Lowen

    Lon Lowen Guest

    Greetings.

    I am attempting to track down people who may have been victim to
    illegal bait-and-switch practices from Dell Financial Services
    and CIT Bank (Dell's creditor). DFS seems to be in the practice
    of denying promotional credit to applicants because of "bad
    credit" when, in fact, the applicant has perfect credit.

    Dell is essentially "cherry picking" individuals who have perfect
    credit and denying them promotions such as "Same As Cash Until
    <some date>" and/or only granting higher-than-standard APR rates.
    The hope, it seems, is that Dell and CIT Bank will get a handful
    of low to no risk consumers who will pay off the account, with
    17%+ APR interest, when their credit worthiness would ordinarily
    grant him/her the benefits of the credit promotions (i.e. "Same as
    Cash" or low APR).

    Firm Mehri & Skalet, PLLC out of Washington, DC is spearheading the
    consideration of a Class-Action Lawsuit against Dell and CIT Bank
    regarding their improper credit practices. These practices include:
    denying clearly well-qualified applicants credit and failing
    to provide up-front information on their credit program (as required
    through the "Truth In Lending" laws).

    If you, or you know of someone, who may have been victim to Dell
    Financial Services, I would like to know. I am working on compiling
    a list of affected individuals for Mehri & Skalet. The decision to
    move forward with a CAL is at a crossroads and victims need to be
    identified.

    Thank you.

    Lon Lowen


    ----------------------------------------------------------------------------

    For the record...

    An example of someone who was denied promotional financing through
    DFS, given a (high) 16.99% APR, denied any "Same as Cash" option, but was
    told up-front that "same as cash" financing would be available for
    the next year and denied any ability to peruse the finance rates and
    terms until after completing the application...

    - never missed any credit card payments,
    - has always (for over 13 years) paid all revolving credit card balances
    in full each month,
    - has never been denied any form of credit in 13 years,
    - has no debt except a minor mortgage payment (owns 75% of the home value),
    - and has the following Credit Rating Scores:
    . Equifax score rating of "801" on a scale from "300-850" (91%)
    . TransUnion score rating of "832" on a scale from "150-934" (87%)
    . Experian score rating of "750" on a scale from "330-830" (84%)

    Plus, Experian rates the credit worthiness as as "Excellent". Equifax
    states, "based upon your score...it is extremely unlikely your
    application for credit cards [...] would be turned down". Equifax
    further states, "Most lenders will consider offering you their most
    attractive and most competitive rates...and rewards targeted to their
    best customers."

    Might this be you? And if so, would you be denied credit from Dell? Would
    you then instead be offered rates and a payment plan usually only
    reserved for individuals who recently emerged from personal bankruptcy?
    And would this only be offered to you after you spent a lot of time
    customized the computer you wanted? And would it then be very hard to
    leave when Dell has already roped you in with the initial expectations of
    good financing?
     
    Lon Lowen, Feb 21, 2004
    #1
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  2. Lon Lowen

    Tom Scales Guest

    Reply with you Beacon score. If it is over 700, it might be interesting.
    Otherwise, Dell's practice is most certainly legal and appropriate. The
    lower your score, the higher the risk of default. Therefore, the higher the
    interest rate.

    The same applies to mortgages, for example. There is a huge market for
    sub-standard mortgages (the industry's term, not mine) where the rate can be
    significantly higher.

    Would you have them give subsidized, low rates, to everyone?

    Tom
     
    Tom Scales, Feb 21, 2004
    #2
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  3. Lon Lowen

    Dave Guest

    All Dell needs to do is state up front what FICO score is required for the
    finance promos. Keeps everything above board.

    Also, Dell has this sleazy little tactic of shipping out your system
    purchase before telling you what your finance terms are. Granted, they do
    have a little blurb in the contract that states that you must refuse
    shipment if you don't agree to the finance terms. Why not give the buyer the
    refusal option BEFORE shipping? Simple, they're betting you're so anxious to
    get your system won't care what crappy interest rate you get.

    Maybe Dell just needs a good class action suit to clean up their act.
     
    Dave, Feb 21, 2004
    #3
  4. Lon Lowen

    Tom Scales Guest

    Yeah, good luck with that. You may not LIKE there approach, but it is far
    from illegal.

    Guess ya just need to read what you agree to before you make the purchase.

    Tom
     
    Tom Scales, Feb 21, 2004
    #4
  5. Not gainsaying anything you might feel about your, or anyone's,
    experience with DFS and/or CIT Bank, I would be curious to know
    what your definition of a proper bait-and-switch tactic, or legal
    bait-and-switch practices would be.
     
    Ogden Johnson III, Feb 21, 2004
    #5
  6. Lon Lowen

    ilovedell Guest

    I financed my Dimension 4400 purchased 2 years ago with DFS / CIT. Got first
    90 days no payments and a 3 year loan. Payments automatically come out of my
    bank account each month. They've treated me fairly and have lived up to
    their promises.

    Only thing is I wish the interest rate was less than 12.9%, but that was the
    going rate 2 years ago and I'm too cheap to pay off the balance ;-)

     
    ilovedell, Feb 22, 2004
    #6
  7. No he didn't. He quoted these words from the original poster.

    When posting on the Usenet, it helps if you keep track of who
    said what when quoting things, and don't mess up the
    attributions.
     
    Ogden Johnson III, Feb 22, 2004
    #7
  8. Lon Lowen

    Crooker Guest

    I am a victim to this as well. I have perfect credit and always have. I was
    denied a decent rate about a year ago without ever receiving any
    explanation. Of course Tom Scales, Dell of DFS has done nothing wrong. Your
    usual stupid post in defense of Dell. BTW, I thought I saw you at the
    superbowl. You were wearing a Dell Shirt and waving a Dell flag.
     
    Crooker, Feb 22, 2004
    #8
  9. Wrong! That was me. I was trying to get the Justin Timberlake's attention. I
    read somewhere that he is a big fan of Dell servers. Anyway, Janet Jackson
    ruined my plan.

    Rocky

     
    Rocket J. Squirrel, Feb 22, 2004
    #9
  10. Lon Lowen

    Tom Scales Guest

    Doesn't have anything to do with Dell -- the OP was making legal claims that
    were incorrect.

    Dell does not have an obligation to provide anyone with a great rate.

    What was your beacon score? I notice the OP didn't let us know his. I'm
    guessing it wasn't QUITE as good as he implied. Is yours over 700?

    Tom
     
    Tom Scales, Feb 22, 2004
    #10
  11. Lon Lowen

    Tom Scales Guest

    BTW, you are aware that the car maker's Zero percent financing is only
    available to those with the absolute highest credit rating, right? Anyone
    suing them over it?

    Tom
     
    Tom Scales, Feb 22, 2004
    #11
  12. Lon Lowen

    Guest Guest

    Tom Scales writes:

    Tom> Reply with you Beacon score. If it is over 700, it might be interesting.
    Tom> Otherwise, Dell's practice is most certainly legal and appropriate. The
    Tom> lower your score, the higher the risk of default. Therefore, the higher the
    Tom> interest rate.

    Tom> The same applies to mortgages, for example. There is a huge market for
    Tom> sub-standard mortgages (the industry's term, not mine) where the rate can be

    The industry term is sub-prime, not sub-standard.
     
    Guest, Feb 23, 2004
    #12
  13. Lon Lowen

    Tom Scales Guest

    I stand corrected -- you are, of course, correct.

    Tom
     
    Tom Scales, Feb 23, 2004
    #13
  14. Lon Lowen

    HH Guest

    Shame, Tom....Shame...Tsk....Tsk.... ;-)

    HH


     
    HH, Feb 23, 2004
    #14
  15. Lon Lowen

    Guest Guest

    Tom Scales writes:

    Tom> I stand corrected -- you are, of course, correct.

    Well, now we are in my business. Then there are Alt-A's
    too.

    Don't ask...

    ah
    Tom> Reply with you Beacon score. If it is over 700, it might be
    Tom> interesting.
    Tom> Otherwise, Dell's practice is most certainly legal and
    Tom> appropriate. The
    Tom> lower your score, the higher the risk of default. Therefore, the
    Tom> higher the
    Tom> interest rate.Tom> The same applies to mortgages, for example. There is a huge market
    Tom> for
    Tom> sub-standard mortgages (the industry's term, not mine) where the
    Tom> rate can be
     
    Guest, Feb 23, 2004
    #15
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