News Release - Computer Mail Order Company Sued for Deceptive Business Practices

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Attorney General Bill McCollum News Release

April 2, 2008

Media Contact: Sandi Copes
Phone: (850) 245-0150

Computer Mail Order Company Sued for Deceptive Business Practices

~ Attorney General’s lawsuit alleges BlueHippo engaged in deceptive sales tactics; took payments for computers and merchandise never provided ~

TALLAHASSEE, FL – Attorney General Bill McCollum today announced that his office has filed a lawsuit against a company which advertises it can help consumers who have poor credit purchase computers. Maryland-based BlueHippo is a financial company which advertises heavily on television and other media outlets throughout the nation and, according to the Attorney General’s lawsuit, allegedly engages in questionable advertising and sales tactics to solicit customers including misrepresentation of terms of sale, delivery and refunds.

According to the Attorney General’s Economic Crimes Division, the current advertising implies that computers will be shipped after six to 13 weeks, when in reality the financing is only considered after that period. The refund policy is purportedly deceptive and unfair and the Attorney General’s Office has received multiple complaints from consumers who cancelled their order and got no refund. Additional issues related to the sales tactics include the following allegations:

- Consumers who paid the full amount actually ended up paying more than the total order price reflected on BlueHippo’s documents;

- BlueHippo withdraws money from costumers’ bank accounts more frequently or at dates different from the ones originally scheduled;

- Consumers are charged late fees and hidden financial charges from BlueHippo;

- The promised $500 “good pay” discounts do not occur – BlueHippo simply offers a $500 increase to the consumer’s credit line; and

- Consumers receive collection letters regarding their transaction with BlueHippo even though they never received the merchandise.

Although BlueHippo claims that it sends the contract information out to the consumer promptly, many consumers claim they have never seen it or received the contract information. The Better Business Bureau has already issued a national consumer alert against BlueHippo, http://www.bbb.org/alerts/article.asp?ID=772. Their advisory reports that the Federal Trade Commission has 8,000 pages of consumer complaints about this company and its practices.

The Attorney General’s lawsuit seeks reimbursements for consumers and an injunction preventing similar practices from continuing. Consumers who believe they are victims may contact the Attorney General’s Office at 1-866-966-7226 or file complaints online at: http://myfloridalegal.com.

A copy of the complaint filed against BlueHippo is available online at: http://myfloridalegal.com/webfiles.nsf/WF/MRAY-7DBJWP/$file/BlueHippoComplaint.pdf.