American computer manufacturer Dell has agreed to pay $4m (£2.4m) to settle accusations that it misled customers and tricked them into paying for expensive products and services.

The case - brought by the New York attorney general's office - goes back to 2007, when complaints emerged about the way the company was advertising cheap financing and warranties. According to state officials, the Texan PC maker often advertised zero interest credit deals for new computers before denying the customer's application and then encouraging them to buy at a far higher rate - often more than 20% interest.

This tactic - described as a "bait and switch" by attorney general Andrew Cuomo - was accompanied by regular failures to provide the support services that customers had paid for; sometimes leaving them hundreds of dollars out of pocket for warranties that were effectively worthless.

Dell denied the allegations, but last year the New York Supreme Court ruled against the company - leading yesterday's announcement of a deal with Cuomo's office.

As part of the settlement, Dell did not admit to any wrongdoing, but said it would pay $4m in penalties, costs and as restitution to affected customers - as well as agreeing to change its advertising practices.

Cuomo said was a victory for consumers, and attacked Dell's "deceptive and illegal business practices".

"Going forward, this deal means that Dell will have to clearly and fully disclose the terms and conditions of their products and services to avoid this kind of fraud at the consumer's expense," he said in a statement.