Maybe you've seen the ads before.. everyone is preapproved for a new computer, bad credit no problem?
Seems BlueHippo pocketed $15 million dollars in one year while making these claims, yet shipped only one computer!
The Federal Trade Commission (FTC) has had it with the company, which offers computers on layaway to those too poor to buy one outright. Buyers put up $99 to $124 in down payments, then make regular payments of $36 to $88. After 13 of these payments, the company says it will send out a computer, while the payments continue until the balance is paid off.
Unfortunately for the friendly folks at BlueHippo, the FTC smelled a scam. People were simply not getting machines, and BlueHippo's "cancelation policy" required people to send in prepaid money orders first even if their account had enough money to cover the necessary fees--not allowed under FTC consumer protection rules. In 2008, BlueHippo settled with the agency. Under the terms of the deal, BlueHippo would pay up to $5 million into a "consumer restitution pool" to reimburse those who had been burned.
Read the rest of the article:
FTC: BlueHippo pocketed $15 million, only shipped one PC
Here's more:
Bluehippo - Scam - Computers and any other items offered by Bluehippo
BBB's Richard Kitterman is interview by KWTX-TV in Waco, TX regarding victims of the BlueHippo computer scam and the current FTC action taken against the company. (11/24/09)
BBB is interviewed for a story on BlueHippo by KWTX-TV in Waco (5/19/09)
