Blue Hippo Draws Fire from Consumers
January 2009 - BBB Greater | MD is warning consumers that since a 2007 settlement with the Maryland Attorney General's office and violations to federal laws with the Federal Trade Commission, Blue Hippo continues to draw more complaints than any other company in our area and disappoint consumers across the country. Despite the settlement and repeat cautions, BBB opened over 1,500 complaints and received over 12,500 inquiries in the last 12 months.
"Almost a year and a half later, complaints are still piling in from unsatisfied customers related to advertising, billing and collections, and refund and exchange issues," says BBB Greater | MD, President & CEO, Angie Barnett. Blue Hippo Funding LLC, Blue Hippo Capital, LLC and Joseph Rensin, owner and CEO of both companies, provide a financial service that offers computers and other merchandise via a hybrid layaway and installment financing plan aimed at low income consumers and those with poor credit ratings. Blue Hippo holds an unsatisfactory report with BBB due to the number of complaints dating back to 2003.
The settlement between the Office of the Maryland Attorney General and Blue Hippo, states, "Blue Hippo and Rensin agreed to: disclose all materials terms and conditions regarding transactions including pricing, financing, delivery, customer default, quality/features of items offered for sale, free/promotional items and any rights consumers are purportedly waiving before entering into agreements that purport to bind consumers; provide Maryland customers with written, signed agreements setting forth all of the material tersm of the sale before they take any payments from teh customer; allow customers to cancel their orders and to receive refunds when required by Maryland lending laws; and stop charging Maryland consumers illegal late fees and comply with the Maryland Merchandise Delivery Law." Blue Hippo denied that it engaged in an unfair or deceptive trade practices or otherwise violated the law, but agreed to the terms of the settlement.
The Federal Trade Commission settled charges up to $5 million against Blue Hippo because of alleged infringements with the FTC's Mail Order Rule, Truth in Lending Act, and Electronic Fund Transfer Act.
Blue Hippo has been known to advertise on television and radio to consumers nationwide and in Maryland. "We cannot stress enough that you must do your homework before you make a decision. At risk consumers with less than perfect credit scores need to be skeptical," explains Barnett.
To file a complaint or check out a Reliability Report on a business, visit www.bbb.org.