What is Digg?507 Comments
- Dummies102, on 10/12/2007, -21/+132sorry, but to the above posters:
their: "their scam is unbelievable"
there: "there is a rip-off going on over there"
they're: "they're ripping people off" - illynova, on 10/12/2007, -10/+117Capitalism... Ignorant masses... pathetic math scores... and you're surprised?
Still, I can't believe how low some companies will sink to make money. - rauz, on 10/12/2007, -4/+102Wow. I did the maths just to check and it actually sums up. Crazy expensive!
$39.99 for 52 weeks, $99 down...I don't think so. - unitedstatians, on 10/12/2007, -20/+113ALL digg users lest KiLL the server CTRL-F5 = Refresh till BLUE HIPPO's dead
- XxUNDEROATHxX, on 10/12/2007, -2/+57I sent this to my dad who works for one of the the biggest news stations in Arizona(3TV). Theyre gonna do a story on this in their "scam and coverups" hour...
- inactive, on 10/12/2007, -16/+67Their laptops are an even better deal.
For just shy of $2,800, you can get a laptop like this:
* 128MB DDR SDRAM
* Intel Processor 2.2GHz with 256K cache
* 20GB 5400rpm hard drive
* 14.1" XGA TFT Active Matrix
WOW! Top of the line indeed! Why, a brand new Macbook would be $300 cheaper and a nice Thinkpad with all the trimmings would even be cheaper.
And no, I don't feel sorry for people who fall for this. The average car buyer probably doesn't know a ton about cars, but it's their responsibility to do a little research before buying one so you at least know that 15mpg is better than 5 mpg and that 200hp is better than 90hp. You wouldn't take it to a mechanic without doing a little research about the problems it is having. Likewise, you should do a minimal amount of research about computers before spending $3,000 on one. It isn't like there aren't a million "how to buy a computer" or "how to build a computer" websites out there that wouldn't get a computer-illiterate person up to speed enough to avoid such scams.
Also, why do they have a black woman talking about how bad her credit is?! What a bunch of stereotyped racist *****! - tomakun, on 10/12/2007, -4/+46Agreed. This is equivalent to charging $5 for a Coke at a movie theatre.
- CharlesDarwin, on 10/12/2007, -20/+58How is this a scam? And if you're dumb enough to by from them, you deserve to lose your money.
- kingfoot, on 10/12/2007, -9/+47http://www.bluehippo.com/aboutUs-Brand.asp
this is there LEGAL page...they covered there words with pictured thinking people are idiots... - DrummerGirl, on 10/12/2007, -1/+37My old manager bought a computer from them and that is how much she is getting charged. I told her she could get a Dell just like it for $300, but she said she didn't have the money to pay it upfront. I suggested that she might set the $40 aside for about 3 months and then buy one, but she said that her husband wanted a computer right now for his business, so she went ahead and bought it with Blue Hippo. They told her she would be receiving it with in 2 weeks after she placed the order, but it didn't come. It was about 4 months before she finally got it. It was a brand new computer(I think it was a Gateway), but so overpriced it isn't even funny...
- zweben, on 10/12/2007, -15/+44*Revokes Earthacis's passport*
HA! Who's illegal now!? - Roger, on 10/12/2007, -3/+30Just because its legal doesn't mean its right.
- kimos, on 10/12/2007, -9/+32Agreed. It's a ripoff, and they're writing out the numbers in misleading ways, but it is by no means a scam. They tell you exactly how much they're charging you.
$49.99 x 52 + $129.00
It's your own fault for ordering it... The last thing we should be doing is giving them free publicity, and getting their Google page rank bumped up. - kimos, on 10/12/2007, -3/+25Yeah... Bring it to the front page. Be sure that you link directly to the site, so that Blue Hippo's page rank will go up. Good idea...
- BassCadet, on 10/12/2007, -1/+23For those who don't subscribe to chi tribune:
FTC investigating BlueHippo after fraud complaints
2 Californians seek class-action status
By Eileen Ambrose
Tribune newspapers: The Baltimore Sun
Published March 19, 2006
BlueHippo Funding, a Baltimore County company that sells computers and plasma TVs nationwide to people with poor credit, is under investigation by the Federal Trade Commission after being hit with hundreds of consumer complaints in its three years in business.
Along with the federal probe, Florida has launched an investigation and, last week, two Californians sued BlueHippo and are seeking class-action status to represent thousands of consumers.
After receiving 15 complaints, the Illinois attorney general in November sued BlueHippo and its president, Joseph K. Rensin, accusing them of deceptive sales tactics. The lawsuit seeks to bar them from making sales in the state.
"It seemed that these consumers were very much taken advantage of. That's why we acted quickly," said Melissa Merz, a spokeswoman for the Illinois attorney general.
Launched in April 2003, BlueHippo grew quickly through radio and cable television ads that pitched computers to those without access to traditional credit. Consumers pay through electronic debits to their bank accounts over one year. The company promises to ship merchandise once customers make three months' payments worth hundreds of dollars.
Early on, however, consumers began to complain that they didn't get their computers and weren't able to get refunds, and complaints have persisted. The Better Business Bureau of Greater Maryland says it has logged 799 complaints in three years, making BlueHippo its most complained-about company.
In August, the FTC subpoenaed Wachovia Bank for records relating to BlueHippo, according to a letter from FTC secretary Donald S. Clark posted on the agency's Web site.
BlueHippo, according to the letter, said the records were irrelevant to whether it had violated laws against deceptive mail or telephone ordering, and tried unsuccessfully to quash the order.
As recently as early March, the FTC was collecting evidence from consumers. FTC officials say they don't comment on whether an investigation is taking place.
But Clark, in his letter, stated, "BlueHippo's claim that this investigation is limited to issues related to the `timing of sales and shipments and delivery' ... is simply wrong."
BlueHippo spokesman Michael Waldron would not comment about an investigation, but said, "If an appropriate regulatory agency has a question with regard to the company's practices, BlueHippo fully cooperates with them in the interest of clearing up any concerns they may have."
BlueHippo said it caters to consumers earning an average of $40,000, but with a history of credit problems. The typical customer's credit score is 455, a level considered extremely risky, the company said. It said staffers explain the sales terms, including its no-refund policy. The number of complaints is small compared to the 160,000 customers served in the past three years, Waldron said.
"The company offers consumers with credit challenges the opportunity to purchase very expensive electronics when no other retailer or lender will," Waldron said.
Critics complain BlueHippo prices its computers at three to five times the retail cost, so by the time customers get their computer they've already paid more than it's worth.
The higher prices reflect the higher cost of doing business with poor credit risks, the company said. It says more than 40 percent of its customers don't complete the payment plan once they receive the computer, about one-third give false bank account information, or the first payment is returned for insufficient funds.
BlueHippo's practices violate state consumer laws across the country, said David Marshall, a Washington consumer lawyer representing the Californians suing BlueHippo.
"State-level regulators should have taken action against this company long ago and prevented them from cheating so many people as they have out of their money," he said. "That's the reason we are doing this lawsuit." - mrgreen4242, on 10/12/2007, -2/+22Agreed, not a scam, but still predatory. If you can come up with the $99 down and the first $40 payment you can get a pretty usable second hand computer. If you can wait for a month ($99 down and $160 in payments) you can get a nice used machine (actually, with just another week worth of payments you can get a brand new Dell). Places like this shouldn't be allowed to prey on stupid people who are likley already pretty short on cash.
- unitedstatians, on 10/12/2007, -7/+27The server is perhaps running on one of those $300 crap computers there selling for $2,300
I Declare KILL the HIPPO !!! - valan, on 10/12/2007, -6/+26"It isn't like there aren't a million "how to buy a computer" or "how to build a computer" websites out there that wouldn't get a computer-illiterate person up to speed enough to avoid such scams."
Websites??? You insensitive clod! - inactive, on 10/12/2007, -4/+24People that buy from them mostly are not stupid, just ignorant about computers. You're not that special just because you know what a $2000,00 computer should be like.
- RyeBrye, on 10/12/2007, -3/+23Well... to say they are selling it for $2200 is incorrect because the payments are spread out. If you use the Time Value of Money (TVM) with a required-rate-of-return of 10% (which is kind of a standard rate to use for these kind of calculations) you would find that it is actually the equivalent of charging $2076.08 today for the $300 computer. [Yeah... that's close to 2200... I know)
(As in $2076.08 today is worth the same amount today as $99 down plus 39.99 a week for 52 weeks at a 10% rate of return)...
This payment schedule yields BlueHippo the equivalent of 692.1% interest on a $300 investment. That does seem EXTREMELY high - even if they are trying to say that they are making up for the risk that they are facing dealing with people with no credit. - MrTea, on 10/12/2007, -2/+20It could be an overclocked Pentium III w/out cooling
- inactive, on 10/12/2007, -2/+20I'm sorry, but if you're that poor - why are you looking to buy HDTV or plasma televisions for $5,000, PERIOD? Or even a $1,500 TV? I make around six figures and I can't even fathom spending that much on a TV ($5,000 -- I guess I can see $1,500 though). If you're spending that much on televisions and furniture, maybe that's a hint as to why you're broke in the first place.
It seems young people today think they have to completely furnish their first apartment before they even have their career started. Damn it, i'm *proud* that I spent the first few years of my career sleeping on the floor of an unfurnished studio apartment with nothing more than a cheap folding chair and a crappy card table and a tiny 13" television and a little alarm clock radio. I'm glad I practically lived under my desk for half a year while I saved up enough money to get some things together.
Being poor or broke can either make you thankful for things later in live and, for the time being, build some character and make you creative or it can make you selfish, materialistic and in debt. It's all up to you. Save the $5,000 TVs for your 30s and 40s. Don't get yourself in debt when you're barely drinking age just so you can have "stuff". - cliffzdude, on 10/12/2007, -8/+24Not a scam.
This is rent to own. Stupid personal finances to "rent to own"? Yes.
Scam? No...
There is a place near me that has rent to own wheels! Really! Rent your 22's, if you gotta have 'em right now.
Remember, these are folks with no or very bad credit. The idea is if you don't pay, they come get it. Alas much of what they have to reposess is trashed. Their cost of doing business is HUGE compared to even unsecured credit. If you've banged up your credit so bad, or if you're so stupid you can't save for something then you get what you pay for. For the risk taken on by such rent to own companies, given how many items are ruined by customers and are lost to renters who move and never pay, the cost of doing business is represented in the huge price on has to pay if they keep the item so long as to buy it.
You have to be a total idiot to use this rent to own crap, but its legal and ethical. They are not "taking advantage" of anybody, they are offering a service for which there is a market. - HiddenForce, on 10/12/2007, -2/+18The worst thing about this is not that they're charging 7-8 times market price for their computers, but rather that they want direct access to your checking account. Bad, bad, bad, bad, BAD!
Wow, checking around, I found this nifty little gem:
Q: Can I cancel if I change my mind?
A: Yes, you can cancel your account at anytime provided that your computer has not been shipped to you. But all payments made up to that point are non-refundable.
So, you get screwed out of whatever money you've been suckered into paying during the "establish your credit" period (13 weeks)? Sounds like a jim-dandy of a deal!
PS: *Outstanding* web design for Firefox users, too: http://www.bluehippo.com/ourProgram_FAQ.asp :P (Not that most Firefox users are gullible enough to actually fall for this.) - babo, on 10/12/2007, -7/+23Under most circumstances, I'd agree with you. Unfortunately, however, this sort of thing is a recursive problem.
Things these days have a tendency to happen like this:
Step 1: a few stupid people fall for some sleazy corporation's scam
Step 2: the money the corporation gets is used to further screw the public in less obvious ways; more people fall for the scams.
Step 3: the corporation now has F.U.D. campaigns, and government lobbyists. People are poorer, the education system fails, and corporate propaganda consumes people's minds.
Step 4: MORE STUPID PEOPLE
Keep in mind I'm not limiting this to a single corporation, it's an example of what happens all the time in this day and age, while the effects slowly build up bit by bit.
Additionally:
Stupidity is contagious through heredity as a result upbringing; remember to have your idiots spayed or neutered. - envy860, on 10/12/2007, -2/+18Weird. I got pizza last night and used a coupon with this silly little blue hippo guy on the back. I thought he looked friendly. Then today I'm on digg, see the headine, and click the link. The hippo popped up. He doesn't seem so friendly anymore...
- john117, on 10/12/2007, -2/+18In case you're like to contact them, here's their corporate registration info:
http://sdatcert3.resiusa.org/ucc-charter/DisplayEntity_b.asp?EntityID=W07298763
And incidentally, the CEO has been in trouble before for predatory lending practices:
http://www.bizjournals.com/baltimore/stories/2005/05/09/story7.html - 1111, on 10/12/2007, -3/+18fishy that they say intel but not what type of intel processor. other than that though i wouldnt call it a scam, they tell you what you get and for how much. they are catering to bad credit customers who may not be able to get a computer another way. there is probably a large overhead too, as im sure a fair amount simply stop paying after computer is in hand.
- JeffD, on 10/12/2007, -4/+19@Hanthus
"People that buy from them mostly are not stupid, just ignorant about computers. You're not that special just because you know what a $2000,00 computer should be like."
No... they are stupid. Not because htey dont know the differene between a $300 computer and a $2000 computer, but rather because they are willing to blindly hand over two grand without putting in any research before hand. Its called thinking before you buy. Would you buy a used car without making sure it runs? - Matt2k, on 10/12/2007, -7/+22> Step 1: a few stupid people fall for some sleazy corporation's scam
> Step 2: the money the corporation gets is used to further screw the public in less obvious ways; more people fall for the scams.
> Step 3: the corporation now has F.U.D. campaigns, and government lobbyists. People are poorer, the education system fails, and corporate propaganda consumes people's minds.
What in the world are you talkinga bout? Jesus. A company sells a few laptops at 400% margin and the world is doomed? You overestimate greedy capitalists. - doublesix, on 10/12/2007, -0/+15Looks good ... I'll just need to get a payday loan to come up with the first $99.
- thewebguy, on 10/12/2007, -7/+21i don't really think it's a scam per se, just a really ***** deal
- syfenx, on 10/12/2007, -1/+15this guy was PISSED!
read this..
i called and was like i dont have a checking account.. ok i just have some questions..
i said "why is it almost 2700 dollars?" (the laptop)
responce "sir why are you asking me, i don't make the prices"
i said "well i was told these pc's are gateway computers, and on the gateway site, i can get a better pc for $830"
responce "well sir you go ahead and do that" (as i hear the click of him hanging up on me) - crapiolio, on 10/12/2007, -1/+15http://en.wikipedia.org/wiki/BlueHippo_Funding
- diggstown, on 10/12/2007, -5/+19Bring this to the front page.
Nobody that frequents digg would be caught by this scam themselves, but maybe we can get some publicity around this. Anybody have any news agency connections so that everyone else can see this scam alert on the 6 o'clock news? - Tux541, on 10/12/2007, -3/+16Not really! It comes with that SWEET 3 year warranty! And it is one of those "brand new top-of-the-line computers".
Does anyone know how many of these have actually been sold? I sure hope not many... - ant1832, on 10/12/2007, -1/+14Unfortunately I don't think it's a joke. I've seen a number of commercials about this recently. This is just as bad as payday loans.
- matx, on 10/12/2007, -3/+16notice that its called Desktop2006G, the 2006 part sounds simular to the year we are in now.
People fool for things like this and dont understand computers becuase there not educated, see it all the time :D - jimphelps, on 10/12/2007, -8/+20Looks like you found the next Tiger Direct.
+digg - DrummerGirl, on 10/12/2007, -2/+14They didn't tell her that on the phone though. They said it would be there within two weeks. It really isn't surprising though that a company that would screw people over like this would lie to them also...
- BassCadet, on 10/12/2007, -1/+13Go to http://www.rentacenter.com
Check out the HDTVs. They charge around $130 a month for 38 months for a 46" rear-projection TV. That's almost $5000. The TV in question is a $1500 Samsung.
Great deal, huh?
These places prey on the poor. They're scumbags. - agentb, on 10/12/2007, -1/+12But hey, its a COLOR monior :O
- StarSaber, on 10/12/2007, -2/+13Which comes out to $2728.48 for that computer. Ouch. I also agree that almost no one who is a memeber of this site would be stupid enough to get this "deal".
- Kericr, on 10/12/2007, -8/+19DING DING DING. I can't believe it took 30+ post for someone to actually mention that, and here I thought people on digg were smart (well, not really). Here's something else that'll twist your brain. On the website, there are seven pictures of people integrated throughout the site. Of those seven, five of them involve black people:
*Three pitcures of black people by themselves
*One pitcure of black people in a group mixed with white people (appropriately, this picture is under 'about us')
*One picture is under 'customer service' where a black person is on a telephone talking to a white person wearing a headset
In addition, the sixth picture is of an indian woman.
Now I ask you, would you have been able to identify the racial profiling on your own if I hadn't pointed it out to you? - Elleo, on 10/12/2007, -3/+14There's no risk at all to them since they demand 13 weeks of payments before the computer is shipped (as well as the down payment).
- diggstown, on 10/12/2007, -0/+11To sinister and anyone else who failed to grasp before commenting:
PLEASE, PLEASE understand the entire deal before posting!
Blue Hippo takes on ABSOLUTELY NO RISK.
In the first 13 weeks, they take in more cash than it would have cost the customer to purchase it directly from the manufacturer. During that time, they don't ship anything to the customer.
No risk, and then they get to ride the gravy train for another 39 weeks.
Caveat Emptor, my ass. I'm as much of a capitalist as anyone, but this is just wrong. - LabattsBlue, on 10/12/2007, -0/+10Gotta love their agreement... here's some fun snippets:
"You understand any payments made are non-refundable. You understand and agree that your merchandise will be shipped 3-12 weeks after our auditors approve your order for shipping, provided you are not in Default."
So... you make 12 weeks of pre-payments to establish credit worthiness with them... then they get to take another 12 weeks more before they send you the piece of crap you're paying 1200% markup on! Oh, and 51 weeks into the program, when you decide the computer is a piece of crap and want a refund - er, um read those T&C's again - NO REFUNDS!
Wait... here's the best one!
"AGREEMENT NOT TO PARTICIPATE IN CLASS ACTIONS. To the extent permitted by law, you agree that you will not bring, join or participate in any class action as to any claim, dispute or controversy you may have against us or our agents, directors, officers and employees."
Yikes... if that ain't the biggest RED FLASHING LIGHT telling you to run, not walk, away from the deal then I suppose it's best just saying that PT Barnum was right. - babo, on 10/12/2007, -9/+19> What in the world are you talkinga bout? Jesus. A company sells a few laptops at 400% margin
> and the world is doomed? You overestimate greedy capitalists.
Read what I said-- it's not just this company, it's ALL OF THEM. I'm going to go out on a limb a bit here and give a possible example, but realize that though this example is specific, and thus not very plausible, this *kind* of thing happens, to varying degrees, all the time:
GM lays off two zillion workers, DuPont chemical pollution makes a few thousand people broke from medical bills-- now they're poor. They have kids but can't afford to support them enough during school, and definitely can't pay for college. Now the kids have very limited carreer choices, and thus are poor as well. The few jobs they could take (at call centers, etc.) have been outsourced to India by the ever-more greedy corporations. They also can't afford to pay taxes, so they're part of a huge deadweight on the public education system. Finally, they see a T.V. ad promising them that their key to success is a computer which they can get for only $59! (*cough*mumble*per month*cough*for 2 years*). They pick up the phone in a media-induced frenzy without thinking, and order it. A few weeks later, they get their $300 PC, and 2 years later they're in debt $2,500 for it, not to mention interest. Their car gets reposessed, they cant go to work, and fall further into debt. The beautiful cycle of capitalism continues... - Klowner, on 10/12/2007, -1/+11Their commercials are just about as bad as the payday loan commercials as well.
(from their commercial)
Girl: "moooooom? can I use the computer?"
Mom: "In a minute dear."
*Girl slouches and looks disappointed*
What the heck is the point of that? Get a "free" computer so you have something fun that you can refuse to share with your children? heck if I know.. - Unr3a1, on 10/12/2007, -1/+11Here is the wiki article about it.
http://en.wikipedia.org/wiki/Blue_hippo_scam
I feel sorry for people that fall for this stuff. -
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