McGraw wins case against BlueHippo

By Bryan Cohen | Jul 20, 2011


CHARLESTON -- West Virginia Attorney General Darrell McGraw announced on Wednesday that his office has obtained a judgment against BlueHippo Funding LLC and BlueHippo Capital LLC.

The Kanawha Circuit Court entered an order July 13 permanently enjoining the BlueHippo entities from doing business in the state and declaring all BlueHippo contracts with state residents void, resulting in over $500,000 in cancelled debt.

Under terms of the order, consumers are not obligated to pay any amounts on their contracts with BlueHippo, regardless of whether the contracts are sold or sent to collection in the future. The order also holds that the bonding and registration requirements of the West Virginia telemarketing law do not violate the First Amendment and Equal Protection Clause of the U.S. Constitution. The district court for the Southern District of West Virginia previously ruled in a related case that the laws do not violate the Commerce Clause.

To read the full story, visit Legal Newsline.

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