A class action lawsuit accuses Blue Hippo Funding of "an elaborate scheme to violate a host of federal and state consumer protection laws" through its broadcast and online sales of big-screen TVs, computers and other consumer items.
The latest lawsuit, filed in Maryland, is similar to one filed two weeks ago in California. It argues that Blue Hippo collects payments from customers, then delays shipments and won't give refunds - even if the product is never delivered.
Blue Hippo requires at least 13 consecutive weeks of payment before it will ship a product and, even once that threshold is crossed, the suit charges other obstacles often arise.
Blue Hippo portrays itself as a friend of those with bad credit, claiming it helps them buy products they otherwise wouldn't be able to afford. Basically, the company sells plasma TVs, computers and other merchandise through a pay-in-advance credit plan.
"I called to order a computer which I saw on television on an infomercial," said Rhonda of Van Nuys CA in a complaint to ConsumerAffairs.com. "When I called to cancel they said 'ok' but now I get a letter from a collection attorney's office saying that they are holding me to that contract even though I don't have a computer from them nor did I sign any contract."
They said they will get a judgment against me for $2100," Rhonda said.
Darrell Proctor, a columnist for Denver's Rocky Mountain News, recently wrote that consumers "would pay $1,820 to Blue Hippo for a computer that would retail for about $500."
It's hard to tell from the company's Web site whether prices are reasonable, as cash prices aren't specified. Everything is stated in terms of weekly payments.
On its Web site on March 17, BlueHippo was offering a desktop computer for $99 down and $39.99 per week. It's not immediately apparent how long the payments last but it's quite likely most consumers could find a similar computer for a lot less if they saved their money and paid cash.
