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Attorney General Tom Miller Reaches Settlement With California-Based Predatory Lender

A California-based company that charged up to 200 percent interest for cash advances and targeted veterans with military pensions will cease offering Iowans unusually steep, high-interest loans. Iowa Attorney General, Tom Miller, reached an agreement with Future Income Payments (FIP), LLC, formerly known as Pensions, Annuities and Settlements, in which FIP paid the state $35,000, will refund Iowa consumers who were overcharged and modify existing contracts into interest-free loans. “This company preys upon vulnerable people who are desperate for money, particularly veterans who can sign over a reliable pension,” Miller said. “For a few thousand dollars cash up front, you are forced to sign over tens of thousands of dollars from your future pension income. That’s what we call predatory lending.” Miller contends FIP offered illegal consumer loans at illegally high interest rates. According to company records, 64 Iowa consumers paid an average annual percentage rate of 131 percent and as high as 200 percent. The majority of those were military veterans and spouses. Miller advises consumers should consider loan advice from a bank, credit union, credit counseling service or trusted financial adviser before entering into an agreement with any company.

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