| Revision as of 03:10, 6 July 2006 edit138.88.105.112 (talk) →External links← Previous edit | Revision as of 12:10, 7 July 2006 edit undo12.160.63.70 (talk)No edit summaryNext edit → | ||
| Line 1: | Line 1: | ||
| ] | ] | ||
| '''BlueHippo Funding, LLC''' is an ] company for customers with poor credit, |
'''BlueHippo Funding, LLC''' is an ] company for high-risk customers with poor credit, that offers computers, flat-screen televisions. While the company has encountered several complaints with the ]; as a result, the Greater Maryland Better Business Bureau issued a consumer alert against the company within eight months of its founding. BlueHippo has stated that based on the numbers provided by the BBB, 100% of the complaints have been replied to, and the total number of complaints equal only half of one percent of their total customer base. | ||
| Their main product is a |
Their main product is a gateway computer system for which they charge a total of $2178.48 (assuming all payments are received on time; includes interest). They require customers send them $1178.73 (a $99 down payment, followed by 13 weekly payments of $39.99 (3 months), and then send an additional 3 to 12 payments, and then send another payment and wait another week for them to credit the most recent payment) and then wait for the computer system to be physically shipped. Then the customers must continue to make payments until they've made a full year's worth of payments (a total 52 weekly payments). A comparable system would normally cost less than $350 out of the box. All customers must agree to non-participation in any class action lawsuit, binding ], including an indemnification clause, and heavy late-payment penalties. | ||
| BlueHippo recently changed its business practices to include a . Under the BlueHippo’s sales terms, customers may elect to receive a full refund of monies paid during the layaway period, after paying a $175 early termination fee. The early termination fee is disclosed and agreed to by customers at the time of their order. In order to be eligible for a refund, customers must cancel their purchase contract prior to the computer being ordered. | BlueHippo recently changed its business practices to include a . Under the BlueHippo’s sales terms, customers may elect to receive a full refund of monies paid during the layaway period, after paying a $175 early termination fee. The early termination fee is disclosed and agreed to by customers at the time of their order. In order to be eligible for a refund, customers must cancel their purchase contract prior to the computer being ordered. | ||
Revision as of 12:10, 7 July 2006
BlueHippo Funding, LLC is an installment credit company for high-risk customers with poor credit, that offers computers, flat-screen televisions. While 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. BlueHippo has stated that based on the numbers provided by the BBB, 100% of the complaints have been replied to, and the total number of complaints equal only half of one percent of their total customer base.
Their main product is a gateway computer system for which they charge a total of $2178.48 (assuming all payments are received on time; includes interest). They require customers send them $1178.73 (a $99 down payment, followed by 13 weekly payments of $39.99 (3 months), and then send an additional 3 to 12 payments, and then send another payment and wait another week for them to credit the most recent payment) and then wait for the computer system to be physically shipped. Then the customers must continue to make payments until they've made a full year's worth of payments (a total 52 weekly payments). A comparable system would normally cost less than $350 out of the box. All customers must agree to non-participation in any class action lawsuit, binding arbitration, including an indemnification clause, and heavy late-payment penalties.
BlueHippo recently changed its business practices to include a refund policy. Under the BlueHippo’s sales terms, customers may elect to receive a full refund of monies paid during the layaway period, after paying a $175 early termination fee. The early termination fee is disclosed and agreed to by customers at the time of their order. In order to be eligible for a refund, customers must cancel their purchase contract prior to the computer being ordered.
BlueHippo takes both phone and internet payments. Although they claimed to secure their online payment form with SSL, no such security was actually in place for at least 6 months (second half of 2005) and remains optional. Customers ordering online must submit complete bank checking account information, employer (including phone #), income, their home phone number, and Social Security number. Insecure online orders are particularly dangerous invitations to Internet fraud, because sensitive personal information is sent over insecure connections.
One interesting and troubling aspect of BlueHippo's internet site is the apparent inability to view financing terms such as annual percentage rate and finance charges. While BlueHippo presents itself as a finance company, its apparent failure to comply with federal regulations regarding disclosures should raise concerns with any potential customer.
On July 5, 2006, BlueHippo announced the formation of a charitable foundation aimed improving computer literacy and access to computer technologies in disadvantaged communities. According to news reports, the BlueHippo Foundation plans a variety of philanthropic activities including the donation computer equipment to community-based organizations, a scholarship program and will offer a free suite of financial and computer literacy tools through its website.
Payment Summary Payment Component Cost Running Total down payment 99 99 13 weekly pre-order payments 519.87 618.87 max 12 total payments after ordering before they ship (for "auditor approval") 479.88 1098.75 payment during week Blue Hippo requires to credit a payment 39.99 1138.74 payments to cover any payments to date that BlueHippo claims were missed or late ? 1138.74+? payments during wait for the system to be physically shipped 39.99 1178.73+? ! remaining payments until they've made a full year's worth of payments (52 weekly payments) 999.75 2178.48+? payments to cover any further missed or late payments ? 2178.48+? Grand Total 2178.48+
External links
- "High interest doesn't compute", article on BlueHippo by Chuck Jaffe of CBS MarketWatch.com
- "BlueHippo Sets Industry Standards in Disclosure, Quality Assurance, Customer Service", Company Press Release
- "BlueHippo to offer computer refunds", Baltimore Sun article detailing new refund policies