WEST VIRGINIANS FELL FOR BLUE HIPPO COMPUTER SCAM - State Lawsuit Helping Consumers

(07/26/2011)

Several thousand West Virginians fell for the advertising promotion of computer sales outfit Blue Hippo, a company that promised all that was needed to buy a computer was a checking account. Following legal intervention by a lawsuit filed by WV Attorney General Darrell McGraw, those that got duped will not have to pay any outstanding amount on their contracts. Blue Hippo Funding, LLC and Blue Hippo Capital, LLC failed to disclose material transaction terms after running an extensive ad campaign focusing on the sale of computers. The lawsuit claimed that Blue Hippo did not tell customers that they would need to sign a contract, a contract which stated that all payments were non-refundable, and that customers would have to pay the entire price of the computer before receiving it. The contract also said if late payments were made, customers had to pay for "free" merchandise promised with the purchase of a computer. Additionally, a press release states that many customers never received computers or "free" merchandise and the few computers that were shipped did not have the promised capabilities. The company was ordered not to do business in West Virginia and its voided contracts resulted in over $500,000 in canceled debt. Blue Hippo along with 50 related businesses owned by Joseph Rensin, filed for bankruptcy in 2009.

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