Syracuse (WSYR-TV) – The Federal Trade Commission has requested a contempt order against BlueHippo from a federal court. The company collected more than $15 million from consumers based on claims they would finance purchases of new computers, but delivered neither computers nor financing.
According to the FTC, less than 1% of the consumers who signed up with BlueHippo received the computers they applied for. They also allege that undisclosed conditions required to redeem store credits were designed to discourage customers from using them.
The FTC lodged the contempt motion with the court Thursday saying that the company has ignored a settlement reached with the agency last year and continued to deceive thousands of financially strapped consumers. The FTC is asking the court to order BlueHippo to compensate consumers and bar similar conduct in the future.
“Years of broken promises by BlueHippo have left consumers seeing red,” said FTC Chairman Jon Leibowitz. “We’re putting companies like this on notice: If you mistreat consumers and thumb your nose at the courts, we will hold you accountable.”
The settlement between BlueHippo and the FTC, reached last April, required the company to pay $3.5 million for customer redress and barred them from further deceit. The commission alleged that BlueHippo had often never delivered the computers in the time promised, or ever.
The FTC says that even after that settlement, the company continued to cheat customers. They allege that more than 35,000 customers contracted BlueHippo for the computer financing deal. But the company provided, at most, a single financed computer, failing to provide financed computers even for 2,477 customers who managed to meet the companies’ conditions.
In April 2009, the FTC told BlueHippo that they were violating the settlement and they began ordering computers. However, only 1,462 consumers ever received a computer, and BlueHippo did not even order – let alone ship – the computers within the three- to four-week time frame the company had advertised. On average, it took about six months.
September 23, 2008:
Syracuse, New York (WSYR-TV) - They've got thousands of complaints against them and have been fined millions of dollars. Despite that, BlueHippo, a company that markets new computers to low income folks, still isn't delivering.
We’ve talked with a number of customers who have paid thousands to this company and have nothing to show for it, and the Attorney General's office is now looking into the way BlueHippo does business.
“I saw commercial after commercial, and finally I was dumb enough to bite on it,” says Jynna Brown.
Being on a fixed income, she couldn't afford to just go to the store and buy a computer, so she signed up with BlueHippo. She paid them nearly $80 every two weeks for a year – over $2,000 total – and she’s got nothing to show for it.
“’Oh good news,’ “ says Brown, referring to the person she spoke with at BlueHippo. “I can remember so specific, ‘Oh good news, you're all paid up, we're going to be shipping it out in one to two weeks.’ “
One or two weeks have come, and again, and so have another one or two weeks -- and Brown is just one of many we've heard from in the same situation
“Over $1,100 so far, and now when I call them they're not even answering my calls,” says Amanda Hartranst.
BlueHippo is ignoring our repeated calls for an explanation too, but they may soon have to answer to the state Attorney General's office. The AG tells us they have a significant number of complaints about BlueHippo and are in the middle of a full scale investigation.
Brown hopes that uncovers what she already believes – “I feel like I've been taken to the cleaners.”
If you have ordered and paid for merchandise through BlueHippo and the company hasn't delivered, you need to file a complaint with both the Attorney General's office and the Federal Trade Commission.
Federal Trade Commission: www.ftc.gov
Attorney General's Office: www.oag.state.ny.us
September 18, 2008:
Syracuse, New York (WSYR-TV) - The company appeals to people with less than perfect credit, promising to deliver brand new computers to customers who stick to a weekly payment plan.
We're talking about BlueHippo -- you've probably seen their ads on TV.
The problem is, customers say the company's not holding up their end of the bargain. Here's The Real Deal on how after months of paying, some still have nothing to show for it.
Amanda Hartranst saw a commercial for BlueHippo and thought it seemed like a pretty good deal.
“I've always wanted a computer and I don't really have good credit, so I figured I'd try it, help build my credit,” Hartranst says.
She put down a deposit, and was supposed to get her computer after she made 13 payments of $34 a week. BlueHippo has now withdrawn 40 payments from her checking account, but still hasn't sent the PC.
“I'm very frustrated. I work hard for my money, and $34 dollars might not seem like a lot, but it adds up every week,” she says.
Amanda's heard plenty of excuses as to why she hasn’t gotten her computer yet; she’s just a few hundred dollars away from paying off the computer and now when she calls, she gets a message, telling her that they’re experiencing a high volume of calls.
“Over $1,100 so far and now when I call them, they're not even answering my calls,” says Hartranst.
Others tell us they've received their computers from BlueHippo, but got none of the free stuff – such as a color printer and a flat screen TV -- the company promises once the PC is paid off.
So what's The Real Deal? After days of trying to get through to the company, a BlueHippo spokeswoman finally returned our calls, only to say they're looking into Amanda's account. As for the printers and TVs customers have been waiting months for, she admits they're way behind in mailing them out.
BlueHippo has more than 2,500 complaints against them with the Better Business Bureau for failing to deliver merchandise in a timely manner. They've also been fined by the Federal Trade Commission for not disclosing that customers can't get refunds once they start making payments.
We will, of course, keep the pressure on BlueHippo to deliver Amanda's computer.
If you've had an experience with this company, we want to hear from you! Call us at 446-9900 or e-mail the details to yourstories@9wsyr.com.
