Scribd
Upload
69 views2 pages

PDF 6176

Companies are targeting military retirees and offering pension advances or lump sum payments in exchange for access to their monthly retirement payments, but these deals often carry extremely high interest rates of up to 106% that can threaten retirees' financial security. Federal law prohibits assigning military pensions to third parties, but these companies try to get around this by calling the payments loans or advances. The Consumer Financial Protection Bureau can provide assistance and information for veterans and retirees, and their Office of Servicemember Affairs addresses financial issues affecting veterans and their families.

Uploaded by

api-309082881
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
Download as pdf or txt
69 views2 pages

PDF 6176

Companies are targeting military retirees and offering pension advances or lump sum payments in exchange for access to their monthly retirement payments, but these deals often carry extremely high interest rates of up to 106% that can threaten retirees' financial security. Federal law prohibits assigning military pensions to third parties, but these companies try to get around this by calling the payments loans or advances. The Consumer Financial Protection Bureau can provide assistance and information for veterans and retirees, and their Office of Servicemember Affairs addresses financial issues affecting veterans and their families.

Uploaded by

api-309082881
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
Download as pdf or txt
Download as pdf or txt
You are on page 1/ 2

Pension advance products

Protect your military retired pay


and other guaranteed annuities.
Be wary of companies offering to provide advances,
buyouts or loans based on your entitlements and
make sure you understand the REAL costs involved.
For example, there are companies targeting retirees
who may need access to cash by offering them
lump sum advances on their pension or benefits
payments. These so-called advances are reported
to carry interest rates from 27 to 106 percent,
thereby threatening many older borrowers safe
retirement. Reports indicate lenders have arranged
for veterans monthly retiree payments to be
automatically deposited in a newly created bank
account and then debited to pay back the loan
and interest.
In the case of veterans, federal law prohibits
assigning most military pensions or veterans
benefits to a third party. Many firms may try to
get around this by calling the lump sum payment
a loan or an advance. Whatever the name, these
transactions generally are not a good deal for
veterans or other retirees. An important resource
for you is the Consumer Financial Protection
Bureau (CFPB) whose mission is to make markets
for consumer financial products and services work
for Americans; their Office of Servicemember
Affairs is dedicated to consumer financial issues
affecting veterans and their families.

Consumer Financial
Protection Bureau

Here are some tips if you are offered a


pension advance loan:
Say no to arrangements allowing a creditor access
to the account where you receive your benefits.
Seek advice from a trusted financial expert if you
need emergency funds; other arrangements may
be less costly.
Visit Ask CFPB for answers to common questions
about consumer financial products and other
options at consumerfinance.gov/askcfpb.
If you believe you were treated unfairly, share
your story with the CFPB under the Tell Your
Story page at help.consumerfinance.gov/app/
tellyourstory; tag your issue pension advance
loan.

Visit consumerfinance.gov

An informed consumer is the first line of defense


against abusive practices. For more information
on a variety of topics, go to the CFPBs website
at consumerfinance.gov where you can get
assistance and information on a variety of
topics including those for Veterans and Older
Americans.
If you have a complaint about banking, credit cards,
credit reporting, money transfers, mortgages,
student loans, vehicle loans, or consumer loans
report it to your states consumer protection
bureau and to the CFPB at consumerfinance.gov/
complaint/.

Consumer Financial
Protection Bureau

Contact Us
Website
consumerfinance.gov/complaint
Submit a complaint by phone
(855) 411-CFPB (2372)
(855) 411-CFPB (2372)
Submit a complaint by fax
(855) 411-CFPB (2372)
General inquiries
Consumer Financial
Protection Bureau
P.O. Box 4503
Iowa City, Iowa 52244

Visit consumerfinance.gov

You might also like