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Controversial Pension Advance Industry Flourishes With Little Federal, State Scrutiny

International Business Times
Date Published: 
Thursday, October 1, 2015

Effectively unregulated in all but two states, pension advance outfits offer lump-sum payments in exchange for a claim on future pension payouts, often from military retirees. As recent reports from the Government Accountability Office have found, the effective interest rates can be astronomical. In California, rates ranged as high as 84 percent, 7 times the state’s legal maximum. In Texas, rates reached 90 percent.