A chain of events over the last month does not bode well for the continued existence of the no-credit-check, allegedly scammy computer purveyor BlueHippo. When the FTC found the company in contempt of its agreement to stop scamming people, Bluehippo’s payment processor froze the company’s funds with little notice. The company was unable to pay its bills and filed for Chapter 11 bankruptcy. Now, the company has changed to a Chapter 7 filing (liquidation) and will most likely go out of business.
It appears that when the FTC filed a contempt charge against scamtastic consumer electronics purveyor Bluehippo, the company’s bank took notice and froze their accounts. Now Bluehippo has filed for Chapter 11 bankruptcy protection, claiming that they can’t repay their creditors, what with the frozen bank accounts and all. This will not end well.
Today the FTC lodged a contempt charge against scammy no-credit-needed electronics seller BlueHippo, saying that the company hasn’t honored its prior agreement to stop scamming customers. BlueHippo agreed to pay back $3.5 million nearly two years ago to reimburse customers who never received the computers they pre-paid for, but the FTC says since then the company has sucked another $15 million out of customers.
BlueHippo, the scammy “no credit check” computer seller accused in several states of taking money from customers without providing the computers and other electronics it supposedly sells, has settled with the FTC for $5 million. They did not admit wrongdoing.
Blue Hippo is one of those “no credit check” computer-buying companies. The basic idea is that you start making payments to Blue Hippo in order to “establish your credit history,” then, after 9 weeks, they send you a computer. You continue to make payments on the computer for a year, after which it is yours.