BlueHippo Funding

From Wikipedia, the free encyclopedia

Jump to: navigation, search
The BlueHippo logo, a cartoon hippopotamus

BlueHippo Funding, LLC is an installment credit company founded by Joseph Rensin for customers with poor credit that offers personal computers, flat-screen televisions, and other high-tech items. The company has encountered several complaints with the Better Business Bureau; as a result, the Greater Maryland Better Business Bureau issued a consumer alert against the company within eight months of its founding.[1] Cofounder Bruce E. Mattare left the company in 2004 to start TronixCountry, which has offered merchandise with installment terms similar in scope to BlueHippo.[2]

BlueHippo's main product is a personal computer system. Their radio commercials state that a customer must build a "short credit history" to qualify. The payment is made through an installment plan.

Contents

[edit] Criticisms and investigations

 This section may require cleanup to meet Wikipedia's quality standards. Please improve this section if you can. (April 2009)

[edit] Federal Trade Commission investigation

The FTC has received 8,000 pages of complaints and launched an investigation of the company. As of February 2008 the FTC settled its grievances with BlueHippo and required the company to pay up to $5,000,000 to settle the FTC's charges. In April 2009, a federal court found BlueHippo in contempt for not issuing reports to the FTC as required by the settlement.[3][4]

[edit] Maryland Attorney General settlement

The Maryland Attorney General reached a settlement with Blue Hippo in 2007.[5] Under the terms of the settlement, the company agreed to pay restitution to consumers who overpaid or did not receive their goods.

[edit] Florida Attorney General investigation

Bill McCollum, Florida Attorney General has said, "We think that overall, this is a very deceptive trade practice."[6]

[edit] Tennessee Attorney General lawsuit

The Tennessee Attorney General filed a civil lawsuit for alleged deceptive practices against BlueHippo companies, as well as proposing an injunction requiring greater disclosures in advertising and prior to obtaining further payments, as well as the freezing of $2.5 million in cash.[7][8]

[edit] The Better Business Bureau

As of August 31, 2007 the BBB has received over 1400 grievances from all over the United States.[6] "Due to this pattern of complaints and BlueHippo’s failure to correct the underlying causes for the complaints, the company is rated 'unsatisfactory'."[9]

[edit] "No Refunds" policy

BlueHippo changed its business practices to include a refund policy in mid-2006. However, the BBB reports: "In November and December 2006, however, the volume of complaints rose again and the BBB has renewed concerns about the effectiveness of the company's efforts to reduce the volume and pattern of complaints. Current complaints allege the company is slow to provide promised refunds and there continue to be delays in delivery of the merchandise."[1] As of January 1, 2007, Blue Hippo offers a full refund if customers cancel during the first 7 days. However, any order canceled after the grace period will receive "store credit" only. This store credit will only allow customers to buy items on the company website.

[edit] Notes

  1. ^ a b "Blue Hippo's BBB listing". http://www.baltimore.bbb.org/commonreport.html?bid=23014013&language=1. Retrieved on 2007-01-24. 
  2. ^ BBB of DC entry for TronixCountry. URL:http://www.dc.bbb.org/codbrep.html?ID=204430445&cons=yhtm Accessed: 2008-07-08. (Archived by WebCite at http://www.webcitation.org/5ZAs564Wr) Lists a Mr Bruce E Mattare as President/GM.
  3. ^ BlueHippo Defendants Will Pay up to $5 Million to Settle FTC Charges
  4. ^ BlueHippo found in contempt for failing to report to FTC
  5. ^ http://www.oag.state.md.us/Press/2007/051007.htm
  6. ^ a b http://www.tampabays10.com/news/local/article.aspx?storyid=62287
  7. ^ http://www.newschannel5.com/global/story.asp?s=9247500
  8. ^ http://www.tn.gov/attorneygeneral/cases/blue%20hippo/bluehippo.html
  9. ^ BBB Alerts & News

[edit] External links

Retrieved from "http://en.wikipedia.org/wiki/BlueHippo_Funding"
Personal tools