FTC Says BlueHippo Business Model is “Built on Deceit”
BBB Continues to Report ‘F’ Rating
Austin, TX – November 16, 2009 – Last week, the Federal Trade Commission asked a federal court to issue a contempt order against Maryland-based BlueHippo Funding, LLC for violating a court ordered settlement issued in April 2008. BBB serving Central, Coastal and Southwest Texas first alerted consumers to this computer dealer in a press release on May 8, 2009. Since then, 12 additional consumers in the local area have filed complaints against BlueHippo.
In a statement released by the FTC, Chairman Joe Leibowitz stated, “We’re putting companies like this on notice: If you mistreat consumers and thumb your nose at the courts, we will hold you accountable.”
BlueHippo claims to provide an alternative for people with limited financing options, such as poor or no credit, to own expensive items like computers. Consumers across the country complain the company does not deliver merchandise on time, does not provide a contract, denies refunds and makes unauthorized withdrawals to their bank accounts.
“According to BBB records, Blue Hippo has targeted a vulnerable group of consumers with poor credit and taken advantage of them,” said Carrie A. Hurt, President and CEO of BBB serving Central, Coastal and Southwest Texas. “BBB supports the Federal Trade Commission’s efforts to stop BlueHippo and hold them accountable.”
In the past 36 months, BBB has received 4,145 complaints about BlueHippo, and the company has failed to respond to any complaint filed since February 2009. Click here to view BlueHippo's current BBB Reliability Report™.
The company has a BBB rating of F due to failure to comply with an arbitration decision or mediation settlement, failure to respond to 2,516 complaints, the company’s overall complaint history and past government action taken by The Attorneys General in Maryland, West Virginia and Illinois.
Consumers like Kim Becerra of San Antonio continue to be out substantial amounts of money.
“I still don’t have a computer,” said Becerra. “I filed a complaint with my bank to get my money back, but BlueHippo denied the refund.”
BBB offers the following tips when ordering items by phone or online:
· Protect your private information. When shopping online, look for the retailer’s Web site privacy policy and never provide your Social Security number, birth date, or mother's maiden name.
· Don't wait for paper statements. Check your credit card and bank statements for suspicious activity by calling your bank or visiting your financial institution’s Web site.
· Check the company’s refund policies. Some merchants set a deadline for returns or charge a fee to accept returned merchandise.
· Pay with a credit or debit card. For extra protection enroll your card in anti-fraud programs.
To check the reliability of a company, visit www.bbb.org.