After 8 months of wondering what type of business the company next door was in...

[krunchykrome]

Has anyone heard of BlueHippo? Website can be found here. Their company headquarters is in the building next to mine. There is a big "BlueHippo" displayed in blue on the outside of the building. I always assumed it was some sort of insurance company. I was having lunch today with a friend and I mentioned the company. He proceeded to give me the run down on the company, and when I got back to work, I researched the company a little more.

Here's what they do: They offer "premier" computers to people with bad credit. Basically, they are preying upon those with no credit, and no education. You make 9 weekly payments to the company, plus an upfront fee. After you successfully make the 9 payments and have built a mini relationship with the company, they will send you a premier computer/monitor/printer. At which point, the customer continues to make weekly payments for 52 more weeks. The total amount after interest that is paid for the computer is around $2200+. The cost of a computer with similar specs: $400.

Here are some of the the sepcs of the computers they offer.

Desktop:
HP Compaq dc5100
Intel3.06Ghz, 256 MB RAM, Windows XP Home, CD combo drive

Laptop:
(unknown HP model)
Intel 1.73 Ghz, 512 MB DDR1 RAM, CD combo drive).


Apparently there are some lawuits out there against this company and there is a lot of heat coming down upon them. The CEO/founder Joseph K Resnin was also the founder of CreditTrust, who went out of business after many issues as well.

Here is some more interesting info about that company and it's practices:
Ripoff Report

Consumer Affairs

Wiki

I really don't believe there is anyone on our forums who would be stupid enough to do business with a company like this, but it's just an FYI regarding something interesting I learned today about our next door neighbor.

What gets me is that this is the perfect area for a company like that....Downtown Baltimore. People just don't know better.

And another thing that bothers me is that this company is a reseller of HP. The computers that they offer are HP, yet it seems HP does not care that it is doing business with a company of this character.

 

[Zenmervolt]

They don't sound like a scam to me. It sounds like they're shipping the computers. They are holding up their end of the bargain that the consumers agree to, just like any other rent-to-own place.

That said, they are clearly setting up a very skewed playing field filled with traps for their buyers and I don't think that they're an honorable business. Just because they're operating within the letter of the law doesn't mean they're doing the right thing, and clearly, they're not.

ZV

 

[pontifex]

I've seen commercials on TV for a similar type of "deal". I'm not sure if it's the same company or not.

 

[2Xtreme21]

There are ads on the radio for that place all the time. It's not a scam-- they're just WAY overpriced, but it's a way for someone with very low credit and little cash at the moment to get a computer.

 

[CKent]

I've seen the tv ads in the wee morning hours and it was pretty obvious what they were doing. There's another one like it which I've seen far more ads for - Circuit Country (hitchhiking on Circuit City's reputation). I agree with ZV, it doesn't sound illegal, caveat emptor.

 

[Akhen]

When I saw the commercials I always recnognized the bullshit, sad that some people actually go for it.

 

[pontifex]

Originally posted by: 2Xtreme21
There are ads on the radio for that place all the time. It's not a scam-- they're just WAY overpriced, but it's a way for someone with very low credit and little cash at the moment to get a computer.

someone that can't afford a $400 PC shouldn't be getting a PC to begin with, not to mention they lose out way more doing this.

 

[Demon-Xanth]

I looked into thier pricing and terms once out of curiousity:
You pay x amount a week, that seems really low. After three months, they ship out the PC. Then you keep paying x amount per week for a year.

Here's where the stupid comes in. If you saved up x amount per week for three or four months, you'd own the PC outright.

 

[krunchykrome]

Well, to be technically correct, it's not a scam. It's more like an unethical business practice. Sure, the company holds it's end of the bargain and ships out a $400 computer to someone who ends up paying $2700+ for it, but that doesnt make it right.

 

[Viper GTS]

This really isn't any different than store cards with 29% interest, or sub-prime lending in general.

Lending to the credit-worthy isn't nearly as lucrative.

Viper GTS

 

[homercles337]

Youre only just NOW hearing about Blue Hippo? A couple years ago there was at least a handful of these crooked businesses.

 

[Mursilis]

Sounds like most of those rent-to-own places. I get their ads in the mail sometimes (bulk junk mail) and if you add up the payments, you're typically paying 4-500% of the MSRP of the product you're buying. For example, I remember a PS2 ("Only $24.99 a week!!") ended up costing ~$750 back when they were $149.99 anywhere else. I don't understand how those places stay in business, but I guess lots of people are not good at math.

 

[krunchykrome]

Originally posted by: pontifex

Originally posted by: 2Xtreme21
There are ads on the radio for that place all the time. It's not a scam-- they're just WAY overpriced, but it's a way for someone with very low credit and little cash at the moment to get a computer.

someone that can't afford a $400 PC shouldn't be getting a PC to begin with, not to mention they lose out way more doing this.

The other thing is that the customer has to pay an upfront fee + 9 weeks of payments before receiving the computer. That that point, they have already made payments in excess of $550, which is already more than the cost of the computer. Upon receipt of the computer, they have to make additional weekly payments for 52 weeks. If they can scrap together $550 cash in 9 weeks, why not just save the money to buy a computer of better quality?

Instant gratification :thumbsdown:

 

[OulOat]

Originally posted by: krunchykrome
Has anyone heard of Blue Hippo? Website can be found here. ... There is a big "BLUE HIPPO" displayed in blue on the outside of the building.

Reading comprehension FTL

http://www.bluehippo.com/aboutUs-Brand.asp

 

[Yreka]

Originally posted by: pontifex
I've seen commercials on TV for a similar type of "deal". I'm not sure if it's the same company or not.

Same here.. Gave me a "Rent-a-Center with a drug habit" vibe.

Originally posted by: krunchykrome

If they can scrap together $550 cash in 9 weeks, why not just save the money to buy a computer of better quality?

I also think there is a significant segment of the population who aren't informed + still think new PC's cost thousands of dollars.

to them it may seem like a deal

 

[imported_LoKe]

It's only a scam if it's misleading. The people who are buying the computers know what they are, know what they're paying, and know what they're getting. It's dishonest, but in no way a scam.

 

[RossMAN]

What's the final cost after making weekly payments for a year?

Or you could save up for 4 months and wait for a Dell special like this (expired)
http://www.slickdeals.net/?per...=9413#direct_deal_9413

Dell SB has a basic configuration Dimension E521 for $399. You may choose Windows XP Home or Windows Vista Home Basic as your OS. Thanks BrydanSolutions, edison, and atxhuskers.

Specs:
Athlon 64 X2 Dual-Core 3600+
Genuine Windows XP Home or Windows Vista Home Basic
512MB Single Channel DDR2 SDRAM at 667MHz - 1DIMM
80GB Serial ATA Hard Drive (7200RPM) w/DataBurst Cache
16X DVD ROM Drive
19 inch E197FP Analog Flat Panel
NVIDIA GeForce 6150 LE Integrated Graphics GPU
Integrated 7.1 Channel Audio
1 Year On-site Economy Plan

Good upgrades to consider:
20 inch E207WFP Widescreen Digital Flat Panel [add $50]

The previous deal, which features a 20" LCD, DVDRW and 1GB of DDR2 memory is still available if you would like a slightly more upgraded machine for $100 more.

BUT THAT DEAL DOESN'T INCLUDE A PRINTER, OMGWTFBBQ

 

[krunchykrome]

Originally posted by: OulOat

Originally posted by: krunchykrome
Has anyone heard of Blue Hippo? Website can be found here. ... There is a big "BLUE HIPPO" displayed in blue on the outside of the building.

Reading comprehension FTL

http://www.bluehippo.com/aboutUs-Brand.asp

:roll: Go troll somewhere else

 

[imported_LoKe]

That's a pretty good deal for $450 (I assume you'd opt for the 20" monitor...who wouldn't?).

 

[dainthomas]

Originally posted by: Viper GTS
This really isn't any different than store cards with 29% interest, or sub-prime lending in general.

Lending to the credit-worthy isn't nearly as lucrative.

Viper GTS

Except it's not even lending. After the "upfront fee" and nine weekly payments, the system is likely paid for and then some. It's basically 52 weeks of stealing from the poor and stupid.

 

[Viper GTS]

Originally posted by: LoKe
It's only a scam if it's misleading. The people who are buying the computers know what they are, know what they're paying, and know what they're getting. It's dishonest, but in no way a scam.

How is it dishonest? Because they manage to get people to pay more for something than it is "worth"?

People need to realize that things are worth what people are willing to pay - As long as people aren't being misled on features/specs/whatever it's their own damn fault if they overpay.

Viper GTS

 

[imported_LoKe]

Originally posted by: Viper GTS

Originally posted by: LoKe
It's only a scam if it's misleading. The people who are buying the computers know what they are, know what they're paying, and know what they're getting. It's dishonest, but in no way a scam.

How is it dishonest? Because they manage to get people to pay more for something than it is "worth"?

People need to realize that things are worth what people are willing to pay - As long as people aren't being misled on features/specs/whatever it's their own damn fault if they overpay.

Viper GTS

Saying they're premium when they're not is dishonest, in my opinion.

 

[krunchykrome]

Originally posted by: RossMAN
What's the final cost after making weekly payments for a year?

Wiki has a rundown of the final cost. They're saying $2178+

 

[LS20]

i bought a new boxed Athlon X2 4000+, 1gb, 250gb, DVD-RW, Vista Premium comuter yesteday for one easy payment of 209.99

 

[krunchykrome]

Originally posted by: Viper GTS

Originally posted by: LoKe
It's only a scam if it's misleading. The people who are buying the computers know what they are, know what they're paying, and know what they're getting. It's dishonest, but in no way a scam.

How is it dishonest? Because they manage to get people to pay more for something than it is "worth"?

People need to realize that things are worth what people are willing to pay - As long as people aren't being misled on features/specs/whatever it's their own damn fault if they overpay.

Viper GTS

Don't defend this kind of business. You know as well as I do that it's unethical. Is it worth getting all wrapped up in the wording?