Future Income Payments, a Delaware LLC, previously known as Pensions, Annuities and Settlements, has recently come under scrutiny during a series of regulatory actions and a civil lawsuit the company filed against the Consumer Finance Protection Bureau. It lost that lawsuit, leading the CFPB to publicly allege the company was issuing loans without a license. It was also the subject of a 2016 action by the State of New York, which alleged it was “operating illegally” and ordered it to cease operations in the state, to pay back interest charged, and to pay a penalty of $500,000. One year before that, the State of California issued a Desist and Refrain order charging that the company, which had been based in Irvine, “engaged in the business of a finance lender or broker without a license from the Commissioner.” Fitapelli Kurta is interested in hearing from individuals who have complaints regarding Future Income Payments and/or its owner and President/CEO, Scott Kohn.
Future Income Payments describes itself as a pension advance company: it provides a payday loan-like product in which customers can obtain a lump sum in return for part or all of the future pension payments. According to the LA Times, those repayments often come with interest payments that some have argued are effectively usurious. Los Angeles City Attorney Mike Feuer, who filed a lawsuit against Future Income Payments in 2017, said that it “charged interest rates as high as 96%, far above California’s 10% usury limit, and threatened borrowers, falsely, that defaulting on the loans could subject them to criminal liability.” As the California Department of Business Overstate noted in its 2015 desist-and-refrain order against the company, Futura Income Payments was not licensed to act as a finance lender or broker.
Feuer, the Los Angeles City Attorney, argued that Future Income Payments engaged in predatory lending, targeting vulnerable customers like senior citizens and veterans. “They prey on the elderly and pensioners, including military pensioners, who are in a tough financial spot,” he told the LA Times. When the CFPB asked the company to produce documents demonstrating its legitimacy, the company countered with its lawsuit alleging the CFPB was unconstitutional.