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Customers Claim Blue Hippo Collects Payment Then Delays Shipment, Does Not Give Refund Even If Product Is Never Delivered

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Case ID: 4733 | Consumer Products | 03/29/2006

A lawsuit filed by lawyers in Maryland 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. Lawyers for the consumers argue that Blue Hippo collects payments from customers, then delays shipments and does not give refunds - even if the product is never delivered.

Blue Hippo portrays itself as a friend of those with bad credit, claiming it helps them buy products they otherwise would not be able to afford. Basically, the company sells plasma TVs, computers and other merchandise through a pay-in-advance credit plan.

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.

Rhonda of Van Nuys CA in a complaint to ConsumerAffairs.com states "I called to order a computer which I saw on television on an infomercial. 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."

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 is hard to tell from the company's Web site whether prices are reasonable, as cash prices are not 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 is not immediately apparent how long the payments last but it is more likely most consumers could find a similar computer for a lot less if they saved their money and paid cash.

The lawsuit is open to anyone who paid for a product from Blue Hippo and did not receive the product or cancelled the order and has not received a refund.


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