Dell Financial Services Predatory Lending Practices Austin Texas

Thanks Flynrider...we are on the same page :)

Was this by chance one of those 0% interest deals? The catch to those is that if you are late with the last payment (i.e. the end of the 0% time period), then you're responsible for a ridiculously high interest charge that covers the life of the loan. If this is the case, that's what you agreed to in order to get the 0% financing in the first place.

Just a thought.

From the informaiton you provided in your ROR...I am going to assume that you purchased your computer (or electronic item) under some type of promotional financing offer; since you stated that you were late and then had upwards of $700 added to your bill from interest and fees. This is what I found from the Dell website under their financing information. I will just use one of the current offers as an example (this is a no interest for 12 months on XPS systems promotion):

No Interest for 12 Months on New XPS Systems is a feature of the Dell Preferred Account and is available to all new and existing qualified customers.

To take advantage of this special offer, you must purchase a New XPS Desktop or Laptop with your Dell Preferred Account and have adequate available credit. All qualifying purchases between December 31, 2008 and January 28, 2009 must be paid in full by your payment due date in February, 2010 or accrued interest will be assessed. Interest accrues from the date of purchase and will be charged to the account if you do not pay your plan balance in full by your payment due date in February, 2010 or or if you fail to make a required minimum payment at any time during the promotional period.. Specific rates and plan features vary for each customer, depending on creditworthiness.


Now here's the important part:

All qualifying purchases between December 31, 2008 and January 28, 2009 {{{must be paid in full by your payment due date in February, 2010 or accrued interest will be assessed. Interest accrues from the date of purchase and will be charged to the account if you do not pay your plan balance in full by your payment due date in February, 2010 or or if you fail to make a required minimum payment at any time during the promotional period.}}} See here's the thing...they don't care whether you are a day late, or 5. Late is late is late. Period.

So, what Dell has offered you is, essentially, a deferred payment plan; meaning that if you pay your total bill in FULL within the alotted time, they will nix any interest whatsoever. Sounds like what happened to you, when you were late (yes I know it was "only one day") they added back all the deferred interest charges, which is exactly what you agreed to up front when you first make the purchase with this type of promotion.

Contacting Dell Financial to tell them that you will be late, does not change the agreement. While I'm sure they appreciate the information, if the payment is not received on time, you are responsible for the deferred interest.