The alert (described here) from FINRA and the SEC about the risks of buying and selling pension payments or structured settlement payments “follows a probe opened by New York’s main banking regulator into pension advance companies.”
So reported NBC News in this report, which one of yesterday’s posts also linked to, in this round-up of various media stories about the alert. Said NBC News: New York’s “Department of Financial Services, at the direction of New York Governor Andrew Cuomo, has subpoenaed 10 companies involved in the business” of pension advances – companies that Governor Cuomo said were ” ‘ preying’ on retirees and veterans by advancing sums that may actually be disguised, high-cost loans”.
So, it’s not just FINRA and the SEC – it’s also New York . . . and Massachusetts, which is also getting into the act, as per this story from the Boston Herald, headlined “State probes firms seeking to buy pension income streams”. Another story, from Investment News, is here, under the headline “It’s lump: Massachusetts latest to probe pension advances”.
Structured Settlement 4Real’s John Darer’s informative post about the New York and Massachusetts investigations is available here.