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Category: Pension Factoring

Beware of Pension Advance Pitfalls, Warn Officials

Beware of Pension Advance Pitfalls, Warn Officials

According to the Consumer Financial Protection Bureau and various media reports, consumers should be wary of pension advances (also called pension loans and pension advance funding).  Some of the questions that officials suggest asking, before entering into such transactions, include the following: What are the costs? Does the consumer have to buy life insurance? Can the consumer cancel the transaction? Have complaints been made about the company offering the transaction? Is the company seeking to control the consumer’s benefits? Some of…

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Article: Be Aware of Legal Issues, Other Pitfalls When Looking At Pension Factoring

Article: Be Aware of Legal Issues, Other Pitfalls When Looking At Pension Factoring

A New York Times article on pension factoring from a few weeks ago advised about “Reading the Fine Print on Pension Advance Agreements.” The article describes legislation and other legal restrictions concerning pension factoring, but also that there appears to be gray areas that can result in potential pitfalls for consumers. “Agencies like the Consumer Financial Protection Bureau, Federal Trade Commission and Government Accountability Office have issued warnings about the services,” wrote the article’s author, John F. Wasik.  He also…

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Federal Legislation Would Address Pension Factoring

Federal Legislation Would Address Pension Factoring

One federal bill would revise the rules for structured settlement factoring transactions – as described here. Another, also recently introduced, would address consumer protection concerns about pension factoring. For more about the pension factoring bill, see the congress.gov page here.