‘Pension Predators’ is the headline over an editorial in The New York Times today. The Times editorial board’s opinion follows the news of investigations by New York and Massachusetts officials into the secondary market for pension payments, and described in these earlier posts here, here, and here (which also mention the alerts put out by the SEC and FINRA). The Times also reported on New York’s investigation in a May 7, 2013, story, “New York Investigating Pension-Advance Firms”.
The Times also mentions the secondary market for structured settlement payments:
Next up for fleecing are disabled people who may have received structured disability settlements. In some cases, borrowers are required to pay for life insurance policies that list the lender as the sole beneficiary.
The Times editorial also mentions opposition to “a bill pending in the Legislature that would lift the longstanding usury cap, allowing short-term lenders who issue ruinously priced loans to operate in the open. . . .”
Reports in The New York Times and elsewhere describe the investigation by the New York state Department of Financial Services that included subpoenas, sent to 10 companies. Said The Times, in its editorial:
Depending on what it finds, the state could bring a lawsuit, issue an enforcement action or create new regulations. Given what we know so far about these seedy enterprises, all three could be required.
The editorial is available in full here.