BOSTON -- A company that promises no credit check to consumers who want to buy TVs and computers is under investigation, facing allegations that it preys on people with bad credit.

NewsCenter 5s Susan Wornick reported Thursday that as a single Boston mom on a fixed income, Verella Moore couldn't afford a computer until she saw ads for a company called Blue Hippo, which promised no credit checks and low weekly payments.

"So I said, OK, I can get my credit built up and still have a computer at home for my daughter to use," Moore said.

Blue Hippo's deal: automatic withdrawals from Verella's checking account for three months, at which point she'd get the computer. To sweeten the deal, Blue Hippo would also give her a free printer and plasma TV.

"I was really excited, you know, because everyone wants a flat screen TV."

But after paying a total of almost $2,300, Verella got the computer but she never got the TV or printer. It has been more than a year.

"So this company took your money and didn't deliver what they promised?" asked Wornick.

Moore replied, "I've gotten no response. No telephone calls. No nothing."

Joanne Cannistraro tells Team 5 Investigates a similar story. "They told us the great deal they had for us," she said.

Cannistraro also signed up to for a Blue Hippo deal. Like Verella, she was promised a new computer, and free printer and flat screen TV if she made payments up front for six weeks.

"We had to give them our checking account information," she said.

But after deducting money from Joanne's account for 12 weeks, taking a total of $600, Blue Hippo delivered nothing except excuses. Joanne was forced to close her bank account to keep them from taking any more of her money

"It's definitely a fraudulent company," Cannistraro told us.

Joanne and Verella are not alone. Team 5 Investigates traced Blue Hippo to its corporate headquarters in Maryland, where we found hundreds of complaints since it opened for business in 2003.

"Blue Hippo currently has an unsatisfactory report with the Better Business Bureau," said Angie Barnett, CEO of the BBB of Greater Maryland.

And, more than 1,200 complaints. The allegations include failing to deliver merchandise, making unauthorized withdrawals from consumers' bank accounts and failing to make refunds, while targeting specific consumers.

"Let's use the example of a single mom with small children," Barnett said. "She wants technology in the home. She is trying to do the best for them. She doesn't have the capacity for putting it onto a credit card, establishing credit. So this makes it fast and easy."

And expensive. Blue Hippo sells a Panasonic television for almost $3,200. It's only $2,799 through Panasonic. Same with this Apple Mac Book: $2,599 at Blue Hippo, but only $1,999 at the Apple store.

Blue Hippo refused an on-camera interview so we couldn't ask them about their pricing policies. Instead, they sent a statement, saying Blue Hippo "was founded to fill a gap between people with bad credit and products that they need to improve their lives." As to the many complaints, Blue Hippo said it "works closely with the BBB to resolve customer issues as they arise."

But the Attorneys General in West Virginia and Illinois are not impressed . They're suing Blue Hippo, alleging the company "preyed on consumers with bad credit charged far more than the actual retail price of electronics, and refused to refund payments."

"They really don't need to be around. Taking advantage of people is very wrong," Moore said.

After our calls Verella received her printer and Blue Hippo tells us her TV is on the way. They also promised Joanne a full refund.

If you've had problems with Blue Hippo, the Federal Trade Commission wants to know. You'll find a link to file a complaint below.

Resources:

Web: FTC Consumer Complaint Form

Web: Search Complaint History