This is a press release from the Federal Trade Commission (FTC). You too can subscribe directly to this – the link is at the bottom of this message. This posting if provided as a service to the clients of Onesta Wealth Mangement and Calrima Financial & Insurance Agency.
FTC Warns Consumers About Pension Advance Plans (Scams) — pension advance scams
If you’re trying to make ends meet, here’s a pitch that might catch your interest:
“Convert tomorrow’s pension checks into hard cash today.”
Sound tempting? Think again. The Federal Trade Commission, the nation’s consumer protection agency, advises consumers that pension advances, also known as pension sales, loans, or buyouts, come at a very steep price.
Most pension advances require you to sign over all or some of your monthly pension checks for five to 10 years. The lump sum payment you get in return is less than the pension payments you sign over, so you’re signing over money you need to live on. And pension advances often require retirees to buy a life insurance policy – with the pension advance company as the beneficiary – to insure that the repayments continue.
For more information, read the FTC’s Pension Advances: Not So Fast.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
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