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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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Army Times Article: Pension Advances Pose Problems For Veterans

Army Times Article: Pension Advances Pose Problems For Veterans

A recent news story in The Army  Times and that ran in other military news outlets contained some criticism of some “pension factoring” or “pension advance” businesses. The story, headlined “Shady Lenders Still Pose Problems For Troops, Veterans”, says that “[d]espite improvements in enforcement of consumer protection laws and education for service members and veterans, problems persist with loans, veterans’ benefits and retired pay and pensions, according to witnesses testifying July 31 before the Senate Veterans’ Affairs Committee.” The witnesses…

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More About Missouri Officials’ Investigation Of Pension Advances

More About Missouri Officials’ Investigation Of Pension Advances

Besides the story that was the subject of this post, there have been more items in media and other outlets about the investigation by Missouri officials into pension advance companies.  Here are some more links: Missouri Treasurer Wants To Ban ‘Pension Advances’ (St. Louis Today) Zweifel Anounces Concerns About Pension Advances, Asks For Help From Koster, Legislature (Missouri Times) And the Missouri Treasurer web site also has a press release on the topic here.

Article About How Pension Factoring Deals ‘Squeeze Retirees’ May Have Been One Piece That Drew Interest From U.S. Senators, Other Officials

Article About How Pension Factoring Deals ‘Squeeze Retirees’ May Have Been One Piece That Drew Interest From U.S. Senators, Other Officials

Over the last month, a rash of news stories appeared on the efforts of federal and state officials to address pension factoring and, in some instances, structured settlement factoring.  (Three of the more recent Secondary Insurance Market Blog’s posts on the subject are available here, here and here.) State and federal officials for years have, at times, expressed interest in regulation of structured settlement factoring – hence, the forty-eight structured settlement protection acts (SSPAs) and a factoring-specific revision, a decade…

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