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BlueHippo Has Many Clones

Watch Out for Layaway Schemes Promising No Credit Check

By Joseph S. Enoch
ConsumerAffairs.com

January 15, 2007

BlueHippo Funding An Investigative Series by Joseph S. Enoch • BlueHippo: Extreme Layaway • A Short History • The BlueHippo Foundation • Trouble Follows BlueHippo's Founder • What Should You Do? • BlueHippo's Response • BlueHippo Has Many Clones --- News • Buying A Computer With Poor Credit • Gateway at Risk in BlueHippo Class Action • Blue Hippo Pays $5 Million To Settle FTC Charges • Federal Court Strikes Blue Hippo's Arbitration Clause • BlueHippo Funding Settles $1 Million Maryland Case • West Virginia Sues Blue Hippo • Class Actions Target Blue Hippo • Consumer Complaints

BlueHippo, profiled in a recent ConsumerAffairs.com investigative report, may be one of the biggest but it is far from the only layaway scheme that preys on credit-starved consumers. There are plenty of others.

One is Help Me To Buy. Its website is shockingly similar to BlueHippo's -- the terms and conditions are almost nonexistent, meanwhile they offer cheap computers and TVs for what will eventually cost the customer thousands of dollars more than the retail value.

Help Me To Buy will sell a computer to anyone: "You're Approved! No Credit Check! No Interest! No Hidden Fees!" its website proclaims.

However, those who use Help Me To Buy will be in the same boat as the thousands of individuals who have paid princely sums to BlueHippo but who often never see a product.

The Help Me To Buy website states that after a $99 down payment and then eight weekly payments a consumer may get their computer or TV. It then states that the consumer continues to make payments, but does not say for how long. It also does not state how much the payments are.

Help Me To Buy is based in Farmers Branch, Texas. Neither ConsumerAffairs.com nor the Better Business Bureau has as of this writing received complaints about the company, but Russ of De Leon, Texas, sent us an an email warning: "Another Bluehippo clone is lowpaymentpc.com (Help Me To Buy). I've been seeing their TV ads. Probably just as much of a ripoff as BlueHippo. These guys are just about like home rental stores, only with rental stores, you get your merchandise right away, but at a price."

Then an official of the Virginia Department of Agriculture and Consumer Services tipped us to Financing Alternatives, based in Chesapeake, Va.

Virginia has received "several hundred complaints" about them and the Better Business Bureau has more," the state official said.

Like BlueHippo and Help Me To Buy, Financing Alternatives sells TVs and computers for thousands more than the actual value. On top of that, they also sell jewelry.

Although the terms are a little clearer, it's still the same scheme: no credit check, high weekly payments and no immediate delivery.

"This company advertises you get a computer with no credit check but you must have a checking account. They tell you that its on layaway for 13 consecutive payments and then they build and ship your computer," said Susan of Elkhart, Indiana, in a complaint to ConsumerAffairs.com.

"The payments are $35.99 per week. They started taking payments out of my checking account 12/30/2005 and I still have not received my computer," Susan said.

The company aligns itself with the Fair Business Association of America (FBAA), whatever that might be.

According to the FBAA's website, it is connected with the National Gaming Institute, a group of people who aim to give themselves an upper hand at casinos. It also was once connected with BlueHippo.

For a short while, BlueHippo proudly displayed the officious FBAA emblem. Although it has long since been removed, the FBAA still claims BlueHippo as a customer.

According to Financing Alternative's website, the company was born in 1998 and ConsumerAffairs.com has 10 complaints on them dating back to 2002.

The complaints are similar to those generated by BlueHippo: inflated prices, no delivery, unfair terms and conditions.

BlueHippo is not the only layaway scheme out there and neither are these examples. Consumers need to read all the fine print and be wary of any company whose advertising tagline is "no credit check." For advice on purchasing a computer, read our computer buying guide.

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