It amazes me that a company like this can exist, when $300-$400 computers have been available at WalMart for several years.

On an unrelated note, the first time I saw an ad for these people, the first thing I thought was \"Why is the company that exchanges my propane tanks selling computers?\"

7 replies

$\"user-pic\"$

YardanCabaret

@Underpants Gnome: I think it's only because Walmart doesn't do Layaway. If they did it would be the same as BlueHippo and people wouldn't get scammed. So really BlueHippo is all Walmarts fault for not doing LayAway to help the unfortunate get a computer.

$\"user-pic\"$

LeChiffre

@Underpants Gnome: In today's world, we want the pc NOW, instead of saving that same amount until the cash is available to purchase the computer.

$\"user-pic\"$

Coles_Law

@Underpants Gnome: Those propane-powered Intel chips are FAST!

$\"user-pic\"$

kcvaliant

@Underpants Gnome:

You forgot how dumb the average person is.

$\"user-pic\"$

magic8ball

@kcvaliant: Based on the fact that they did direct-mail advertising to the kids who live on-campus in the dorms at my university (i.e., almost exclusively freshmen) I'm going to guess that they prey on the inexperienced and the vulnerable in addition to those who are just plain \"dumb.\"

$\"user-pic\"$

magic8ball

@ryan_h: Wow. It's scammerific! It's like one-stop consumer victimization. No need to hit two different scammy websites -- we'll defraud you AND phish you all in one convenient location!

$\"user-pic\"$

magic8ball

@magic8ball: And you should see their privacy policy. It says, among other things, that by using their website you have entered into a business relationship with them and they now have permission to call you even if your number is on the DNC list.

$\"user-pic\"$

temporaryerror

@kcvaliant:
The company seems to sell instant gratification. It's just like Rentacenter. Some people would rather get it now and pay much more for it than save up and pay regular price. That, or they just see that 32\" LCD (worth about $450) as $29.99/week for the next year rather than the $1560 that they actually pay for the thing.

$\"user-pic\"$

scootinger

@temporaryerror: It's not instant gratification...you have to make 3 months of payments (out of 1 year's payments), THEN you receive your PC. I remember looking at the numbers a few years ago (not sure if it's the same now)...basically, you could buy an equivalent PC at Best Buy for the total amount of the 3 months' payments. Really sad.

$\"user-pic\"$

DeeJayQueue

@temporaryerror: Yeah, but with Blue(R)ippo(ff) You DON'T get it now. You have to pay into the system and then in 3-4 weeks they supposedly send you a computer. It's like a secured credit card. On top of that there's some sort of \"worthiness\" system they use to determine if even then you're eligible to receive a computer.

But they sure make themselves out to be like rentacenter to attract less worthy, less intelligent and less savvy buyers.

$\"user-pic\"$

temporaryerror

@DeeJayQueue:
If I were to guess based simply on the commercials, I would think that I got the computer almost immediate. I'm sure that there is some sort of fine print that states otherwise, but on the immediate surface, it looks like you get the laptop (or whatever) within a week at most.

$\"user-pic\"$

ARP

They will continue their behavior until the costs of the fines and litigation is greater than the money they make ripping people off.

1 replies

$\"user-pic\"$

H3ion

@ARP: As long as it's only money, they'll probably continue their operations. Now if there were criminal fraud charges that could be brought against management, that might accomplish something.

$\"user-pic\"$

XTC46

Thats pretty smart...tell people to pay you 88 dollars a week, and in 13 weeks you will send them a computer. Thats a massive profit.

Even at the 36/week plan, I could build a computer and ship it for the amount I had at the 13 week mark, anything after that would be profit.

I just dont understand how people can do this, but cant just leave the money in their bank account and wait 2 months then go buy a computer.

1 replies

$\"user-pic\"$

StanTheManDean

@xtc46 - thinksmarter on twitter:

Because people are too stupid to buy from WallWorld / Staples / Best Buy etc when they are in a hurry for a computer.

I am from the land of Katrina. When your business has been flooded, your equipment has been destroyed and you need a computer just to access the interweb etc...... what would you do? Me? I run to the nearest mall area to find an electronics purveyor to grab the cheapest in-stock computer.

I must have too many brains.

Blue Hippo actually had a spike in sales.... Katrina victims needing a computer.

$\"user-pic\"$

morganlh85

I don't get it. They are collecting something like $2000 from their customers for $300 PCs...WHY can't they fulfill the orders? They are still making an insane profit!

4 replies

$\"user-pic\"$

H3ion

@morganlh85: Greed is the only word that properly describes it. If I can make $95 shipping the product or $100 not shipping the product, which would you do? These are not honest business people.

$\"user-pic\"$

humphrmi

@morganlh85: My thought too. Second thought: all the money started rolling in, and the owners liked the cash flow, but didn't like having to buy computers for their customers, so they just kept the money and figured that the people who had to buy from them wouldn't be smart enough to complain. In other words, a big Ponzi scheme.

$\"user-pic\"$

hammitz

@humphrmi: That's not a ponzi scheme, that's just stealing.

$\"user-pic\"$

Bob Lu

@hammitz: Agree.

$\"user-pic\"$

zentec

@morganlh85: @humphrmi:

Exactly. The reason they don't send the computers is that they don't have the money to buy them. The money went into the pockets of the individuals running this thing.

$\"user-pic\"$

sonneillon

Luckily a contempt of court charge can be a serious matter. This could mean jail time. Maybe the CEO should be hit with the old fraud stick. I bet those PCs would magically appear if the CEO was looking at 2,477 counts of fraud.

2 replies

$\"user-pic\"$

StanTheManDean

@sonneillon:

only if you can find the CEO. Remember, he has already boarded his private jet and forgot to file a flight plan.

$\"user-pic\"$

ChemicallyInert

@sonneillon: Yeah but a corp. is a person. It's not the CEO who dunnit, it was the corporation so we should put the corporation in jail for a day. (In case you couldn't tell, there's sarcasm in them thar hills.)

$\"user-pic\"$

temporaryerror

They have got to be seriously greedy to not just be happy with the ridiculous profit and actually deliver to avoid charges and other legal problems. I always loved how their commercials told people that they \"Deserved a new laptop!\".

$\"user-pic\"$

savdavid

Look, if you take in $20 million in profit and pay $5 million in fines you are making a great profit. Hippo just sees it as the cost of doing business. In fact, most of the companies who sell defective junk, false advertise, lie to buyers, etc... know they have little to fear. Why do you think there are so many infomercials selling crap? Get in quick with saturation ads, sell as many units as quickly as possible by lying, pay a fine and count your money. Repeat.

$\"user-pic\"$

rpm773

I'm kind of surprised anyone owned up to being scammed by a company called \"Blue Hippo\".

It must have been tough, but in the end they did the right thing. I'm proud of them.

$\"user-pic\"$

tinmanx

I just saw a deal for a $250 Acer laptop at Best Buy today. It's not a netbook, but a notebook with a 15\" screen, 2GB RAM, DVD burner and Windows 7. Not the best laptop around and not very powerful, but it'll do what most people will use the laptop for.

With prices like this there's no reason way BlueHippo can't fulfill the laptop shipments, other than greed that is. Getting it in bulk direct from Acer will probably cost even less.

Someone should start a legit version of this, there's lots of money to be made even when everything is done right.

$\"user-pic\"$

consumerd

haven't these people heard of craigslist? or hell a PC repair shop? Surely they could have bought a not quite new computer and it still be capable for as least a few more years.

1 replies

$\"user-pic\"$

AK47 - Now with longer screen name!

@consumerd: That's exactly what we said the first time we saw these commercials. The one we saw said $49 a week - that's $2548 for a computer of questionable value. Seriously?

I'm always sad when people get scammed, but this deal was clearly a ripoff from the beginning - - and you can tell that from the large print!!

$\"user-pic\"$

almightytora

\"The BlueHippo website is offline as of this afternoon.\"

No, it's not. I just went to it.

[www.bluehippo.com]

3 replies

$\"user-pic\"$

edman007

@almightytora: I just took a quick look at their site, and the login page says:

User Name (Your SSN)

That scares me.

$\"user-pic\"$

ryan_h

@edman007:

uhhhh wow..... \"password (usually your mothers maiden name)\"

what the hell

$\"user-pic\"$

cyberpenguin

@almightytora: You're right. I just did too.

$\"user-pic\"$

Outrun1986

The problem with the walmart computers is that blue hippo targets people who cannot afford a computer now, but can afford a little bit every month towards one. If people could afford to spend $300 on the walmart computer at once they would go there and buy it. Its a payment plan just like rent a center (except you never get your computer in the end).

Why these people don't put the money into some other kind of savings account and just save until they have enough for the computer I will never know. Perhaps with the return of layaway if they could find a store that sold computers and had layaway they could put one on layaway.

Most people are ignorant of technology prices and think computers are expensive, when they are relatively cheap machines out there these days. Most home users will only need one for basic tasks such as internet so a $400-500 machine would probably suffice for a lot of families with children. But there is a perception amongst those not in the know that computers are $1000+ machines that they cannot afford.

$\"user-pic\"$

drjayphd

But but but they had to keep ripping off customers to pay back the fines! How else are they going to afford it?

$\"user-pic\"$

outlulz

I've seen the computers Blue Hippo offers and they sure aren't worth the $1100 they get from the consumer.

$\"user-pic\"$

sasquatch28

I'm sorry but if you are stupid enough to fall for these scams then you deserve to have your money taken. However it is nice to see the government cracking down on some of these sleazy companies. Sometimes I feel like I'm living in Russia or China with all these scams everywhere.

$\"user-pic\"$

CumaeanSibyl

Is BlueHippo one of those that bills itself as a computer seller and also a credit repair service? \"Send in your payments on time and help rebuild your credit score!\"

I've seen that angle taken by a bunch of rent-to-own places and it makes me feel kind of sad, but then I'm not sure if the terms on your average low-limit secured credit card, meant for consumers with poor credit, are that much better.

$\"user-pic\"$

blandname

I seriously cannot believe anyone fell for the Blue Hippo scam, why not just put $99 or whatever a month into a shoe box and just straight up buy one of the perfectly good ~$400 computers at Walmart or Best Buy after a few months? You can even get a decent laptop for $400 now, and Blue Hippo won't even send the computer until you have paid far more than $400. Am I the only one who doesn't see any reason why anyone, even the poorest, would want to do this?

1 replies

$\"user-pic\"$

Dyscord

@blandname: I didn't know exactly HOW they did it, but any offer that claims to give you a free HDTV is a little fishy to me.

$\"user-pic\"$

halcyondays

This is all the more ridiculous since Wal-Mart has brought back lay-away. If they'd advertise that angle, it would help put a few of these scammers out of business.

1 replies

$\"user-pic\"$

Eat A Peach

@halcyondays: They've apparently only brought back layaway at some of the Walmarts out there. They discontinued the service at our Walmarts in the NE of Philly area a few years ago and they indicated they have no intention of bringing it back to their stores here.

$\"user-pic\"$

Blueskylaw

Account Login
To login to your account simply enter your social security number and password (often your mother's maiden name) to the right.

Or if that's not working you can also enter:

Social Security Number/Home Phone
BlueHippo Account Number/Home Phone
Social Security Number/House Number
Bank Account Number/Zip Code
Social Security Number/Password

BlueHippo asking for this information is insane since I have not even made up my mind to purchase anything yet.

I believe that I would get the exact same results if I gave my social security number and mothers maiden name to some strange guy selling meat from the back of his truck.

1 replies

$\"user-pic\"$

MichClay

@Blueskylaw:

If anyone is dumb enough to enter that information on a website named \"BlueHippo,\" than I am fully convinced now the world is coming to an end.

$\"user-pic\"$

Dyscord

Blue Hippo is a scam?! What the hell?! You mean I can't easily get a computer AND a big LCD TV?!

Seriously, when I first heard the commerical I was thinking \"Hmmm...sounds like a rental company or something. You pay a premium for a computer that's underpowered.\"

Then I heard the line about a \"Free HDTV\" and called bullshit on the whole thing.

Reminds me of an ad I got the other day about being able to save $400 on an $800 computer running WinXP, 40 GB hard drive and 512MB of ram.

$\"user-pic\"$

katia802

We sold used (repaired) computers at Goodwill. What we called Internet Flyers, not good for gaming, low power, but good enough for surfing and minor offline use. With monitor and printer 75.00. Man, wish my old boss had been a little more dishonest, we could have squashed blue hippo and still given people their computers!

$\"user-pic\"$

dasunst3r

I hope the executives of this company get their freedom taken away from them and their fine be DOUBLE of what they ripped off from consumers.