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BlueHippo Funding Settles $1 Million CaseCompany Will Refund Consumers' Money, Pay Penalties |
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By Joseph S. Enoch May 11, 2007
The office of the Maryland attorney general will also resolve BlueHippo complaints for consumers outside the state of Maryland. Those consumers should call the Consumer Protection Division at (410) 528-8662. Maryland attorney general Douglas Gansler and BlueHippo settled after a two-year investigation stemming from 1,320 complaints filed with the Maryland Better Business Bureau. “This company has misled customers nationwide and as of today, they have agreed to halt their deceptive business practices,” Gansler said. Gansler estimated the settlement will cost BlueHippo $1 million on top of $300,000 the company must pay in restitution to the attorney general’s consumer protection division. Please make sure your flash player is up to date. Click here to update.
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ConsumerAffairs.com has received 199 complaints from consumers as of this writing. The story is always the same: “I have repeatedly tried to cancel my order with BlueHippo Funding,” wrote Karonise of Detroit, Mich. “I have spoken to over six representatives in the last four weeks. Each representative said over and over again as if reading from a script: 'Why would you want to cancel? This is a great offer.' "I have spoken with Ronald Campbell who identifies himself as a supervisor. He would not listen as I told him I have requested to cancel my order over four times now. He said he's sorry, but they cannot refund my money,” Karonise told ConsumerAffairs.com. But for BlueHippo’s Maryland costumers who received nothing, they will be getting their money back and for Maryland consumers who overpaid for products will be receiving the difference of how much they paid for the product versus how much BlueHippo paid. Consumers should be receiving checks in the mail no later than early 2008, Gansler’s spokeswoman, Raquel Guillory, said. Consumers will not have to do anything to receive restitution because the attorney general is using sales documents to identify who will be receiving the checks and will then mail them accordingly. Gansler estimates that as many as two-thirds of BlueHippo’s Maryland customers never received the computers or televisions they ordered. Additionally, when consumers failed to receive the goods and requested to cancel their orders, BlueHippo allegedly refused to refund the consumers’ payments, violating Maryland law. In addition, the attorney general alleged that BlueHippo and Rensin:
The findings verify complaints receive by ConsumerAffairs.com. BlueHippo’s founder and chief executive officer, Joseph Rensin, has feigned ignorance of any wrongdoing and still claims to have broken no laws. “The settlement agreement finds no wrong doing or violations of law occurred,” according to a press release on BlueHippo’s website. “Voluntary settlements of such allegations are a common business practice in corporate America – BlueHippo believes it is in the best interest of consumers and its business to amicably resolve such claims without costly litigation.” In fact, companies often choose settlements rather than go to court because most of the documents used by the plaintiff against the company would become public record if the case went to trial. In the criminal word, reaching a settlement before trial -- "on the courthouse steps," in common parlance -- is known as "copping a plea." It is generally a tactic used to avoid the stiffer sentence that often results if the case goes to a jury. As a result of yesterday’s settlement, BlueHippo must also comply with these conditions while doing business in Maryland:
“Maryland is the first state in the country to get BlueHippo to comply with consumer laws and make restitution to their customers,” Gansler said in the statement. West Virginia, Illinois and Florida have similar cases pending against BlueHippo. There is also a pending () class action lawsuit in California. Consumers are urged to file complaints with their state attorney general and with ConsumerAffairs.com.Report Your Experience
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