Dell's daylight robbery

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Nathan Davis25 February 2007, 7:57 AM

When one purchases 'theft cover' for a product, one might assume that it 'covers theft.' But what if the company has done the dodgy in the fine print? What if that company is Dell?


When one purchases 'theft cover' for a product, one might assume that it 'covers theft.' False advertising laws usually assure such fair assumptions, but what if the company has done the dodgy with fine print? What if that company is Dell?

Dell's XPS M1210 notebook: Great when not stolen.Dell's XPS M1210 notebook: Great when not stolen.
When Adam and Jenny Bolte purchased a brand new XPS M1210 notebook, in October last year, for over $3,000, they opted to pay extra for protection from theft with Dell's 'CompleteCover Guard.'

It turns out that was a waste. 

Two months later, when the pricey machine was swiftly stolen from under their noses, Adam and Jenny found out the hard way that Dell's fine print should be read extremely carefully.

"I was typing on the laptop while sitting down at a local restaurant at a fancy part of town, when two big guys came running past the table and grabbed the laptop from behind," says Adam Bolte.

"I chased the thieves two blocks before they were able to give me the slip. The whole thing was on security camera (in daylight), and the police informed me that they had a clear picture of the entire incident."

Upon a quick read of the agreement, the Boltes learned that they would be left in the red by Dell. The theft cover agreement demands that a theft must be "accompanied by forcible and violent entry." Even with videotaped evidence, Dell won't cover theft in a public area (even, according to Dell, locked hotel rooms.)

However Adam and Jenny weren't prepared to give up that easily.

Upon carefully reading the supplied agreement, the Boltes discovered the coverage for their stolen notebook, an XPS, wasn't limited under the agreement. Only two notebook ranges are specifically limited under the agreement: Inspiron and Latitude. No mention of XPS.

Even with this knowledge, his claims were consistently knocked back by Dell -- that's if someone responded.

"They said their service was so good but they never return our phone calls," says Jenny Bolte.

One of the Dell representatives that eventually responded via email admitted to the fault, albeit with broken English.

"Thank you for highlighting us that the XPS model does not states in our Complete Cover Guard’s agreement." The representative then says that the policy will be updated.

But that isn't the policy to which the Boltes agreed.

So we spoke with Dell and outlined the issues. A senior Dell representative then called Adam Bolte.

"This is the first person at Dell I've spoken to who natively speaks English," declares Bolte, somewhat elated. "What a breakthrough!"

As requested, Bolte sent in an email, much like many before it, which detailed his situation. He included all previous correspondence, a Police declaration, among other relevant papers.

Bolte was then promised he would hear back from Dell over the weekend, or, at the very least, on the following Monday.

Tuesday arrives and he hears nothing, so Bolte sends in a reminder. The senior representative responds, saying he was sick and would get back to him that same day.

Two days later and still not a word, so he fires in a morning reminder. Perhaps the dog ate Dell's homework.

He is told that someone will contact him 'within the next day.' Three full days later and nothing but silence.

Shall we blame the weather this time?

The Boltes, with all their patience, are understandably miffed at the lack of professionalism.

The appalling customer care is what I find most disturbing in all of this. Is Dell trying to rob itself of customers?


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Potoroo:

The insurance industry generally distinguishes between theft which involves "forcible and violent entry" (a standard insurance phrase) and theft which does not. The first case requires the thief to break in through my locked door/window, etc (locked hotel rooms don't count because hotel staff have access), whereas the second covers instances where the thief simply walks in through my wide open door and takes the unsecured item off the table.

Confusion arises because there is no common definition of theft with or without force, so where one insurance company will define the former as burglary and the latter as theft, another will switch the definitions.

The issue for me in this instance is not that Dell's contract used the more restrictive definition. My issue is Dell's utter inability to deal with the situation effectively, fairly and quickly - particularly, since they had failed to include the XPS in their exclusions, as they were apparently in the wrong. Unfortunately, it is all too common.

One of my tactics when a company is playing the "lets ignore him and hope he'll go away" game is to send a letter to the CEO or MD via registered mail. That way the company cannot deny having received it (someone had to sign for it), and CEOs generally take a dim view of having their boardroom lunches interrupted with actual customers politely but firmly detailing their subordinates' incompetence. Most will immediately hand it off to the next in line with the instruction to "fix it". That means I tend to get a phone call very shortly after from a manager sufficiently senior to actually solve my problem.

29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

darwin collins:

In my daughter's case, the thiefs busted down the front door and cleaned out a 3girl duplex. Doesn't matter if the laptop was cabled to the desk (or not), since, they even took the carpet. (seriously)
(its as if the burglers were women and wanted to outfit their own apartment. grin)

Anyways, I have called Dell, and it is simply not covered.

However, I am hoping that I can get the warranty transferred to a new laptop since I have 600+ days left.

Did your situation ever get fixed?

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

Dave:

I buy a new laptop every one-two years and will be due to buy soon. DELL will NOT be getting my business. GOOD customer service is essential, especially for when something goes wrong as the Boltes have discovered. If DELL continues there current policy of ripping off their customers they will fall even further behind HP. They seem to want to spend more on Laywers (keeping pesky customers at bay) and less on customer service, is this a good direction for any company?

29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

raindog:

Whilst not wanting to let Dell of the hook for a moment for what amounts to fraud and deception on their part.
Who seriously buys insurance from a manufacturer? Would you buy health insurance from your butcher as a hedge against Mad-Cow disease?

29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

will:

Hmm you got me thinking raindog ... now I'm seriouslty thinking of buying my 'Health Insurance' from DELL. From the sounds of it, it can't be any worse than their 'Theft Insurance'.

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

tin:

I guess they are hoping they can avoid paying up and just run the deal as a scam to make more cash.

I'd make a point to Dell that someone running up and grabbing the thing from under your typing hands is rather forcible... I mean, did the crooks ask them for it and just have it given to them?

29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

MiCCAS.net:

Sorry to say, but this is just.. well.. ridiculous. It's like paying for theft cover which doesn't cover theft.. wait a minute!

29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

Matthew Kopelke:

After reading this story, am pleased I've just switched from a Dell Latitude to a HP Pavilion. I don't want to give my business to a company with such a shoddy customer support program (not to mention the fact they make you pay big bucks for it to boot!)...

29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

Chris James:

Checked with my insurer AAMI and this is what they say 'AAMI does not offer any insurance cover for mobile phones or laptops for risks outside of the home. However, a mobile phone or laptop would be covered under our contents policy if it was stolen from, or damaged by another insured event, within the home.
y'. So not all insurers offer this type of cover; premiums probably too high in relation to expected claims experience. Adam should start proceedings in his state's small claims tribunal and challenge decision by Dell/insurer.

29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

Tony:

DELL are so keen to take people's money without properly informing them, then use their own words to screw the little guy! What hope do you have! My next choice in a PC or Laptop will certainly not be a DELL. HP you have my next purchase!

29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

Dan Warne:

It's worth noting that most home contents insurers have inexpensive add-ons for their policies that will allow you to cover an item against theft, loss or damage anywhere.

I'm insured with Suncorp and as long as you ring them and let them know the specifics of the item they're insuring, they cover it anywhere in Australia and New Zealand, and for 30 days of the year overseas too from memory. 

You do pay a small additional monthly premium but it's negligible... probably in the order of $10 a month or so to cover a laptop.

Plus for the extra premium, they reduce the cost of claims on this aspect of the policy to $100 rather than the regular $400 - $500 or whatever it is.

Extended warranties or insurance policies bought from non-traditional retailers (credit card companies, major retailers, hardware manufacturers) are often nowhere near as good as those available from traditional insurers, I've found. 



29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

Josh:

It would only cost $33 to bring a civil action against Dell; I'd encourage you to do that - I doubt that they'd turn up and then the judge would then rule in your favour. You could even claim for the $33 filing fee.

29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

jageral:

Ok, time to cut Dell some slack here. I'm a very satisfied Dell customer, let me tell you. I bought a laptop around 8 months ago, paid for complete cover etc. I've only ever had an issue once and that was with a USB port having a bit of grief and detaching.

I called Dell, their customer support was excellent! They had a techy out within the next day and replaced the motherboard. No grief whatsoever, and they will definitely get my further business.

The question I'd like to ask is - what the heck were you doing in a public place with a very expensive item just asking for it to be stolen?! Where's your common sense. If you present an opportunity like that of course someone is going to knock it off!

It's a shame stuff like this happens, but try not to leave yourself open for it - don't go blaming a quality company for your own stupidity.

29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

Gregg:

jageral = member of dell management team. Regardless of what you say, Dell offered a dodgey insurance policy that deceived people to belive they were safe to sit in cafe's and on trains with their laptops... They are wrong and they WILL pay

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

raindog:

Why is it that anyone who is not down on Dell is instantly a member of their management team?

Jageral could you find out why if we are all Dell execs and PR suits then why are we not -
a: receiving salary
b: entitled to further staff discounts
c: fluent in a non English language

I await a speedy reply.

Gregg insurance or not common sense dictates some responsibility on the insured to minimise risks. This however should have been clearly stated in a worthwhile insurance policy.


29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

Will:

To your comment jageral, "What the heck were you doing in a public place .."
... My God its a laptop .!!!... a portable computing device .. this is the reason people buy them, so they can take it and use anywhere (including restaurants) .. Do you onlyuse your laptop at home, while its on your desk !!

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

jageral:

And I completely agree with you, it /is/ a laptop and we /should/ be able to take it around with us wherever we'd like. However, at the end of the day we need to exercise a little responsibility and be aware of the risks involved in taking this expensive piece of gear out in public. It's an open invitation to opportunistic theft, whether we like it or not.

And no.. I don't only use my laptop at home, it gets used at work, on holiday etc. however I definitely am careful about where I put it, and there is no way I'd be caught dead working on it in Sydney in public with easy access for any quick thinking crook to quickly nab it.

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

John:

So in other words you don't use your laptop to its full potential... SMART. May as well get two desktops and a USB stick. Gosh and DELL does have the worst customer service, when you have a problem you have to call back like 6 times, no sorry 10 times. That's what I had to do to get a faulty DOA laptop changed. If that $2.50 and 3 hours of my time wasted is good customer service... I don't know what hole you have been living in.

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

jageral:

I use my laptop in a fashion that suits my needs and I'm fully aware of what could possibly happen if I took it to a public place where it is exposed to theft. The point I'm trying to make here is that if you're laptop has sensitive info on it, or it would be irreplaceable and a major inconvenience to lose it - then don't expose yourself to the possibility of getting it nabbed.

If we all lived in an ideal world it wouldn't have been stolen in the first place.

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

SteveR:

so I presume, following your logic, that you leave your car parked in the garage all the time... I mean... public places and all that...

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

raindog:

For a lot of people the two desktops and USB stick isn't a bad option especially when you factor in the docking stations extra keyboards and decent monitors. Less to lug, no periodic battery replacements and better upgrade path often makes it a better & cheaper option. That said the notebook still has its place.

A snatch and grab is still relatively unlikely but notebook theft from vehicles, conference rooms, or the office on weekends is at epidemic level and for the most part insurance cover is so expensive its not worth consideration. Budget blowouts anyone?

John if by your third sentence your into rabid mutterings of living in holes etc, IU can see how customer service will be quick to stamp your file "screwloose" and go back to dealing with the humans.

Dell service will get bouquets and brickbats just like its competitors. The real issue here is if Dell wishes to offer products outside its core business those product should be researched, honest and of good value.
For my money its not an area Dell should mess with same goes for new car dealers, I've seen it all before don't bother offering as refusals may offend.



29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

Jenny:

I totally agree with you, John. I called them regarding about the theft cover, finally somebody got on to me but they said they want to ring me back in an hour but never get a call back from them. And they said to us they are pride of their service.

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

Nick Bishop:

Jageral, are you asking people to make waste of 2-3 hours a day?

Many people use their laptops on a train (and yes, frightening things do happen, very quickly, on a train). Are you asking those people to put their laptops away and spend the time doing nothing?

From time to time I do, too, and I use my laptop on the bus and tram, too. Three hours each day (but the battery doesn't quite go that far...).

Insurance companies in general need to wake up. I don't want to pay for questionable insurance products, and they should focus much more on fraudulent claims.

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

HunterSV:

What country do you live in, Pakistan? In most "civilized western countries" it is quite normal to be able sit in a restuarant or other public place and not expect to be robbed, then called "stupid" for being a victim of crime by some knucklehead like you.

The problem he had was the BOGUS INSURANCE COVER DELL SOLD HIM, not their tech support. See the difference, dopey?

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

Nick Bishop:

It just reminded me that there are a few criminals out there that will rip mobile phones from people while the owner is talking on them.

The same happens with cars, too (car-jacking).

I wonder how mobile phone insurance policies stack up? Again, I think the insurance companies in Australia need to look at crime in Australia and accept it as part of the Australian landscape (which is sad, yes).

In places like Singapore and even Hong Kong, insurance is a fairly foreign concept - simply because no-one knocks you off like they do here. Pick pocketing is somewhat problematic in Hong Kong, but that's about all.

29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

Nick Bishop:

Another rip-off by insurance companies (this time disguised as Dell).

The insurance industry would be better to pound the Government about the stupid court system, or police under-resourcing, rather than pound their innocent policy holders over some wording.

Many of these criminals walk free, if they ever come to court. Australia encourages crime too much. It's good that Adam & Jenny weren't killed for their laptop, believe me it happens.

29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

rawseqs:

My experience with Dell has always been that they're not really interested in service - only in selling you something new when your existing product goes down.

29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

Boo-radley:

Unless you are a registered business, Dell doesn't want to know you. I had the unpleasant experience of owning a very expensive Dell notebook around 8 months ago. Within 2 months i had a shoddy motherboard, hard drive and screen replaced. Being in a regional area meant that the supposed next day service was non-existent. All told i had to wait 12 weeks for my precious (over-priced and under-specced) notebook to come back.
I ended up giving the doorstop to my younger cousin. Haven't heard from him since though...
Go reputable brands like Toshiba, Sony, HP i say

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

deskstar:

technically in the united states we do not have an official language yes its true look it up thats why spanish is appearing everywhere

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

lgsmith:

I'd say at face value the 'Theft' insurance should cover any instance of theft, especially seeing as it's sold on a laptop. So strike one. Even if the T's & C's state the exact particulars, I'd say on the face of it you've been misled & so have a case to get another laptop/refund.

Customer service issue I think is just a matter of slipping through the cracks of a very large company, which is deplorable but happens. You should always either ask for;
a) service reps full name and location
b) a reference or case number (Dell has these)
If you get the run around with a 1st level support, ask for someone senior and start to get angry. Don't let them transfer you to anyone but someone that can help. Being vocal helps.

I've worked with Dell machines for about 6 years and they've always been pretty tops on support, the techy's are always knowledgable and the english barrier is getting lower. Just remember you sound pretty funny to them too...

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

Anonymousleeeee:

I sound funny to them....? Wait a minute. I paid
for in U S A $. Read the agreement in U S A lanugage.
Why can we not speak to TECH support in E N G L I S H???
Use the INTERNET & Operating System in E N G L I S H!!
This is America and it does not have to PRESS ONE
for E N G L I S H!!!
Trebor

29 February 2008, 8:38 PM (1 year ago)report abuse Send to a friend reply

Anonymousleeee:

Try contacting your local paper if in a large city.
The consumers pages. List your gripe and they will
then pressure F* dell~!!! Had positive results in
simular situation. Peace Out Chicago

29 February 2008, 8:30 PM (1 year ago)report abuse Send to a friend reply

Marc - a dell customer:

One hour ago I gave dell $2000 for a new laptop & yes I was also duped into buying the Complete cover & I thought it would cover theft... under any circumstances. I wish I read this first!
Anyway I recommend that you;

1) contact the Insurance Industry Ombudsman

Insurance Ombudsman Service Limited PO Box 561 Collins Street West Melbourne VIC 8007
Telephone: 1300 780 808 (local call rate) Fax: 03 9621 2060
Email: ios@insuranceombudsman.com.au Website: http://www.insuranceombudsman.com.au

2) contact ASIC, they control the financial products (including insurance)
http://www.asic.gov.au
They even have a howto scream guide you can download from here  

3) contact the relevant state consumer affairs department in your state: you can get a full list from http://www.consumer.gov.au

And if I didn’t have any success I would speak with Today Tonight & then my lawyer. I sure as hell, I would not take it lying down!

29 February 2008, 8:31 PM (1 year ago)report abuse Send to a friend reply

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