Blue Hippo Funding ...
" BlueHippo Funding, LLC is an installment credit company for customers with poor credit that offers personal computers, flat-screen televisions, and other high-tech items, typically priced far above market standards. 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.
Product costs
Their main product is a personal computer system for which they charge a total of $2178.48 including interest, subject to late fees. Radio commercials state that a customer must build a "short credit history" to qualify. The payment is made through a long installment plan. Initially, customers pay a $99 down payment, followed by 13 weekly payments of $39.99. This is followed by 3 to 12 variable payments. Customers then make a final pre-shipping payment, followed by a week-long waiting period, before the system is physically shipped. Post-shipment, customers must do 52 more weekly payments (1 year - see chart below). Comparable computer systems generally cost $400 out-of-the-box.
BlueHippo changed its business practices to include a refund policy in mid-2006. Under the new policy, customers may elect to receive a full refund of the money paid during the layaway period, after paying a $175 early termination fee. The 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. However, the BBB reports : "In November and December 2006, however, the volume of complaints rose again and the BBB has renewed concerns about the effectiveness of the company's efforts to reduce the volume and pattern of complaints. Current complaints allege the company is slow to provide promised refunds and there continue to be delays in delivery of the merchandise." "
- http://en.wikipedia.org/wiki/BlueHippo_Funding
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Product costs
Their main product is a personal computer system for which they charge a total of $2178.48 including interest, subject to late fees. Radio commercials state that a customer must build a "short credit history" to qualify. The payment is made through a long installment plan. Initially, customers pay a $99 down payment, followed by 13 weekly payments of $39.99. This is followed by 3 to 12 variable payments. Customers then make a final pre-shipping payment, followed by a week-long waiting period, before the system is physically shipped. Post-shipment, customers must do 52 more weekly payments (1 year - see chart below). Comparable computer systems generally cost $400 out-of-the-box.
BlueHippo changed its business practices to include a refund policy in mid-2006. Under the new policy, customers may elect to receive a full refund of the money paid during the layaway period, after paying a $175 early termination fee. The 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. However, the BBB reports : "In November and December 2006, however, the volume of complaints rose again and the BBB has renewed concerns about the effectiveness of the company's efforts to reduce the volume and pattern of complaints. Current complaints allege the company is slow to provide promised refunds and there continue to be delays in delivery of the merchandise." "
- http://en.wikipedia.org/wiki/BlueHippo_Funding
.
posted by JamesB at 12:04 PM
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