Gov. Andrew Cuomo said today he has director the state Department of Financial Services to investigate “pension advances,” in which companies provide lump-sum payments in exchange for a retiree’s pension payments.
“These companies are literally harvesting the-hard earned pensions of seniors, military veterans and other hard working New Yorkers,” Cuomo said in a statement. “Using deceptive practices to cheat people out of their pensions by enrolling them in backdoor high-interest loans will not be tolerated in our state.”
Lawsky said, “These pension advances appear to be nothing more than payday loans in sheep’s clothing,” and he subpoenaed a number of companies:
1. LumpSum Pension Advance
2. Pension Funding LLC
3. Pensions Annuities & Settlements LLC
4. Pension Income LLC
5. Cash Flow Investment Partners
6. DFR Pension Funding
7. Veterans Benefit Leverage
8. Voyager Financial Group LLC (Pension4Case/Cash Out My Pension/Buy Your Pension)
9. First American Finance Corporation
10. Investing Forward (Termbrokers LLC)
To report a concern, call the department’s hotline at 1-800-342-3736.