MANHATTAN (CN) – Two companies that offer to finance the sale of personal computers to consumers with poor credit ratings, Blue Hippo Capital and Blue Hippo Funding, have agreed to pay up to $5 million to settle a complaint by the Federal Trade Commission. Many consumers, who answered a nationwide advertising campaign for those with “less than perfect credit,” paid hundreds of dollars and received absolutely nothing. ftc press release
Many consumers who ordered products paid hundreds of dollars and received nothing in return, the complaint alleges.Bluehippo Funding and Bluehippo Capital of Baltimore defraud people with poor credit by offering them “high-end consumer electronics” for a down payment and installments, billing them electronically before Blue Hippo gets written authorization for it, without disclosing terms, and refusing to issue refunds, the FTC says in Federal
Court. As a result, consumers often paid for goods but received nothing. Blue Hippo refuses to issue refunds “regardless of whether BHF or the consumer was the breaching party, and regardless of whether or not BHF had ordered the merchandise from a third-party vendor. As a result, many people paid defendants from $99 to several hundred dollars and received no merchandise in return,” the FTC claims in Federal Court.