The Phaserl


The Oligarch Recovery – U.S. Military Veterans are Selling Their Pensions in Order to Pay the Bills

from Liberty Blitzkrieg:

Moore soon found himself two months behind on rent and at least 10 days from payday. In bed that night, he saw a TV ad for Future Income Payments, a company based in Irvine, Calif., that buys pensions in exchange for a lump sum. The company said it had worked with military personnel and government workers. Ten minutes later, he got up and made the call.

The next day, a company representative called Moore back and explained that he would receive a $5,000 cash advance for selling part of his pension. In exchange, Moore would have to pay the company $510 a month for five years  — a total of $30,600.

If it were a typical loan, that would amount to $25,600 in interest — a rate of 512 percent.

Most of the companies advertise nationally on news sites and in military magazines, consumer advocates say. One ad highlighted in the recent congressional hearing on pension advances featured two smiling people in uniform below the words “This is our America.”

The effective interest rates charged by pension advance companies can be abusive, Cartwright said. But it is particularly “egregious” that the companies go after military retirees, targeting income streams that are backed by the federal government, he added.

– From the Washington Post article: Some Retirees are Making a Terrible Mistake with their Pensions 

Welcome to the oligarch recovery. An economic rebound so robust that an ever increasing number of Americans are being forced to borrow money at usurious rates just to pay the bills. Today, I want to introduce you to the latest scheme to profit from poverty: Pension Advance Companies.

Here’s some of the Washington Post’s article on the subject from today:

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1 comment to The Oligarch Recovery – U.S. Military Veterans are Selling Their Pensions in Order to Pay the Bills

  • Christine

    Sad story of people who agree to serve as canon fodder and went through a very taxing and humiliating military training no one in his right mind would want to go through unless being INVADED (never happened in America. We go to other people’s countries to fight for ideology and never question whose…) but never bothered to learn their own rights!

    Congress does very little right. Just happened that, way back in 2005, Congress passed a law exempting all pension plans from bankruptcy. People don’t know. People listen to snake oil salesmen all the time and, faced with the “shame” or fear of not paying their bills, they liquidate their pension.

    Sad commentary about the people in this country and their gullibility. Hopefully, others will learn. But WHEN???

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