But more than a decade ago, pension factoring drew the attention of at least one federal legislator.
In 2001, Florida Congressman E. Clay Shaw criticized the practice, according to a newspaper article that ran at the time. Said the article, headlined “VA Benefits Sales Under Fire” (linked here):
“A South Florida congressman said he is outraged that companies are paying lump sums to buy veterans’ disability benefits for as little as 30 cents on the dollar and he wants to propose legislation that would stop them.
“These are the people who are the most vulnerable. They’re the ones getting it between the eyes,” said U.S. Rep. E. Clay Shaw, R-Fort Lauderdale. “And we’re going to go to war against these companies.”
Shaw said he was prompted to act after reading a Sun-Sentinel story last week that said the U.S. Department of Veterans Affairs was warning veterans about companies that paid cash for disability and pension benefits and calling the practice a “financial scam.”
The 2001 news story is available here.