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September 23, 2013 / Scott Tillett

New York Judge Refuses to Dismiss Class Action Against Dell for Improper Billing

On September 12, 2013, a federal judge in New York denied, in part, Dell Financial Service LLC’s motion to dismiss Belsito Communications Inc.’s class action lawsuit for improper billing.

According to Belsito, Dell sent a bill for a $6,500 laptop the company had purchased to the wrong address and had the incorrect phone number on file. Jopseph Belsito, President of Belsito Communications, did not learn of the billing error until after he received a letter from the company’s bank suspending its business line of credit, resulting in the loss of a $75,000 investment in one of Belsito’s news publications.

The complaint alleges that Dell systematically sent billing statements to incorrect addresses, possibly due to a software glitch. Belsito further alleges that Dell assessed late penalties against its customers for untimely payments made in association with the billing errors, reported customers to collection agencies in order to charge off the unpaid accounts, and provided false and negative credit reports to credit reporting agencies, negatively impacting customers’ credit ratings.

According to Belsito, Dell confirmed that it had sent the bill to the wrong address, that it had the wrong telephone number on file, and that Dell had erred by failing to update Belsito’s address and phone number, which had been confirmed at the time the laptop was purchased. Upon learning of Dell’s mistake, Belsito offered to pay the $6,500 bill, but a Dell representative allegedly indicated that it was too late and that the account had already been referred to a collection agency. Belsito accuses Dell of acting in bad faith for refusing to correct the error despite allegedly acknowledging fault.

Belsito has sued Dell for negligence, breach of the covenant of good faith and fair dealing, and defamation of credit. The plaintiff is seeking compensatory and consequential damages on behalf of a class of all Dell customers damaged by Dells improper billing. The Court’s recent ruling, denying Dell’s motion to dismiss, means that the class action lawsuit will continue.

If you or someone you know has been injured by improper billing or unfair business practices, you may be entitled to relief. Please call Khorrami Boucher Sumner Sanguinetti, LLP for a confidential consultation.


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