Complaint Review: Dell Financial Services - Austin Texas

We are writing this letter to outline a ruinous credit policy being thrust upon individuals doing business with Dell Financial Services.

Until the 1st quarter 2008 our credit relationship with Dell Financial Services was very good; however this quickly changed when the turmoil of recent economic times spilled over into our household.

As with a bulk of the American public, we have been wading through a morass of fiscal turbulence and have subsequently been confronted with serious challenges in the area of cash liquidity.

In the face of these challenges, we decided on a proactive approach to stem potential losses and maximize our ability to repay debt obligations.

It seemed a fair and logical course of action to inquire about interest rate reductions with our consumer credit accounts. As a side note, we continued and still continue to maintain current payments on all of our consumer credit accounts.

Appearing to lend viability to our decision was the backdrop of billion dollar bail-outs for financial firms, guaranteed savings accounts yielding less than 4.5% APR, stocks being dramatically down across the board, home values plummeting in our area more than 18%, and job loss announcements numbered in the thousands daily.

To facilitate efforts we contracted with Consumer Credit Counseling (hereto forward referred to as CCC) services.

CCC was able to negotiate lower interest rates with nearly all of our credit accounts, thereby allowing us greater capacity to repay full balances while still providing creditors interest income 5% or more above current guaranteed savings account rates of return.

In stark contrast, Dell Financial Services flatly refused to negotiate with CCC or accept payments from them.

As our financial situation continued to destabilize through the 2nd and 3rd quarter of 2008, we personally contacted Dell Financial Services to inquire about an interest rate reduction.

All efforts were outright rebuffed and the 29.99% Average Daily Balance interest rate on our account was vehemently maintained. As is well known, this equates to an actual APR several percentage points higher.

Considering the instabilities of the global economy and the increased exposure to complete default, it would seem logical and prudent for a company to adopt a more reasonable stance towards negation with customers who are current on their payments.

Amplifying our bewilderment was the fact that Dell Financial Services was charging an interest rate exceeding our next highest credit account by 10% as well as exceeding nearly all published market APR indices by 28% or more.

The representatives we talked with were often difficult to understand and consistently illustrated a limited capacity to interact verbally using the English language.

Language barriers aside, the call center representatives became unmistakably agitated when we would ask to negotiate a lower interest rate.

During a call in the 3rd quarter of 2008 timeframe, one representative angrily informed us that in his country attempting to negotiate a debt is considered a crime.

This might be a true statement for individuals under the jurisdiction of Sharia law or Panchayat rules; however it is certainly within United States Civil legal boundaries to attempt to negotiate terms with a creditor.

Cultural barriers and rigid credit practices appear to be clear indicators that Dell has become a member of the effete and growing coalition of U.S. companies who have forgotten that it was the wallets of consumers that fueled their success in becoming the massive entities they are today.

One must wonder if Mr. Michael Dell's entrepreneurial visions would have reached fruition had his Grandparents attached unconscionably excessive interest rates and inflexible credit terms to the loan they proffered as starting capitol for his fledgling PC's Limited venture.

We are completely shocked that in a time of fiscal turmoil and upheaval this type of carefully crafted quasi-servitude specifically designed to generate excessive interest income is allowed to flourish unrequited as State and Federal governments review methods of providing assistance in helping the economy.

Please think long and hard before accepting the "SPECIAL" offers proffered by Dell Financial Services via credit lines as their policies demonstrate an unrepentant display of utter contempt towards their customers.

Phil

Roanoke, Indiana

U.S.A.

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