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Tag: “military pension” “pension payment” “pension factoring”

Minnesota Attorney General – Like CFPB – Sues Pension Advance Company

Minnesota Attorney General – Like CFPB – Sues Pension Advance Company

The Minnesota Attorney General has followed the lead of the Consumer Financial Protection Bureau and filed suit against a pension advance company, alleging that the company violated state lending laws, took unfair advantage in other ways, when it had veterans and senior citizens sign their pension rights to the company in exchange for immediate, but highly-discounted, cash payments. The Minnesota AG has sued Future Income Payments, LLC, which is the same company that is being sued by the CFPB over alleged…

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Report: Pension Factoring Again Under Scrutiny Following Legal, Legislative Developments

Report: Pension Factoring Again Under Scrutiny Following Legal, Legislative Developments

Companies that are in the business of engaging in pension factoring, or pension advance, transactions are again coming under official scrutiny following developments in courtrooms and legislative forums, according to a recent news report. “Some retirees are making a terrible mistake with their pensions,” reported The Washington Post this week in a story that described the experiences of individuals entitled to receive military and government pensions who sold the rights to receive the future payments in what some say are legally-questionable types…

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Pension Factoring Likened To Payday Loans ‘In Sheep’s Clothing’

Pension Factoring Likened To Payday Loans ‘In Sheep’s Clothing’

Yet another story about pension advances, from earlier this year, began this way: “Pension advances, also called pension sales or pension buyouts, are also being called ‘pay day loans in sheep’s clothing’ and are the latest scam to hit retirees.” That’s from an article from moneynews.com.  The article, entitled “Pension Advances Nothing More than Payday Loans in Sheep’s Clothing“, is available here. Some earlier Secondary Insurance Market Blog posts on pension factoring are collected at this post.

Pension-Advance Companies? Beware, Says Article

Pension-Advance Companies? Beware, Says Article

“[P]otential threats to older Americans’ financial security can come in the form of financial products that are risky, expensive, and inappropriate for thei needs.  For example, there are companies that target retirees who may need access to cash by offering them lump sum ‘advances’ on their pension payments.  These so-called advances are reported to carry interest rates from 27 to 106 percent, threatening many older borrowers’ safe retirement. Pension advance firms have been targeting military veterans, and reportedly have recently…

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Missouri Officials Investigating Pension Factoring, Says Newspaper

Missouri Officials Investigating Pension Factoring, Says Newspaper

The Kansas City Star newspaper reports that “Missouri Regulators Investigate Pension Advance Firms That Prey On Retirees.”  The full story is available here. Some of the previous Secondary Insurance Market Blog posts about state or federal officials investigating pension advance or pension factoring are available here and here and here and here and  here.