Stoltmann Law Offices is interested in speaking to those individuals who may have lost money in Future Income Payments, LLC, also known as Pensions, Annuities, and Settlements, LLC. Future Income Payments and its owner, Scott Kohn, have been subject to regulatory action in numerous states including, Washington, California, Colorado, Iowa, Indiana, North Carolina, New York, Massachusetts, Pennsylvania and Virginia. The Consumer Financial Protection Bureau (CFPB) served Future Income Payments with a Civil Investigative Demand in November 2016. It is alleged that Future Income Payments engages in agreements that are sales of pensions and not loans. Regulators have claimed that the company misstates the effect of the contract and that, in fact, pensioners are entering into a consumer loan and not a sale.
The purpose of these misrepresentations is to try to exempt Future Income Payments’ loans from consumer lending laws and regulations and to collect interest on loans at illegal rates. The consumer receives a sum of money that he is obligated to repay. The company’s contract specifies the consumer’s future pension payments that actually constitute a repayment schedule for a loan. Interest rates for the loan in some examples reached 130% a year. Regulators state that hundreds of retirees have been subject to the alleged fraud. 282 New York pensioners allegedly received amounts anywhere from $2,500 to $58,000 while being charged interest rates as high as 130% a year between March 2012 and April 2015. The state of Virginia stated that elderly veterans with military pensions were being targeted for the illegal loans by Future Income Payments.
FIP Investments were sold primarily by insurance agents, and were, in some cases, at the behest of their Independent Marketing Organization (IMO). Customers were sold this product as an investment vehicle targeted to grow income. This income was then used to fund insurance products, such as index universal life insurance policies (IULs), or to supplement the customer’s income. You may be able to recover your losses if you were sold FIPs by your insurance agent.
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