BlueHippo, CEO Found in Contempt of 2008 Court Order, will Pay $13.4 Million
The FTC filed an appeal in 2009 after finding the company violated its 2008 court order
BlueHippo Funding and its CEO Joseph Rensin were found by a federal court to be in contempt for violating a 2008 court order for operating a deceptive computer financing scheme.
The Federal Trade Commission (FTC) charged BlueHippo and Rensin with contempt in 2009 after the agency determined that the company contracted with thousands of consumers to finance new computers, but in most instances failed to provide them and failed to disclose key aspects of their refund policy.
The 2008 settlement suspended a $13.4 million judgement and BlueHippo only paid $609,000 in consumer redress. The FTC appealed and the court has now ordered Rensin to pay the full 2008 settlement amount.
In a written statement, FTC Consumer Protection Director Jessica Rich said,
This scheme preyed on cash-strapped consumers looking for computers to improve their lives and the lives of their children. This case shows that the FTC not only takes decisive action against wrongdoers, but also does whatever it takes to see the case through to a fair conclusion.