'Pension Advance' Company to Offer Pennsylvania Consumers Restitution
HARRISBURG, Pa., March 3, 2018 /PRNewswire-USNewswire/ -- Today, the Pennsylvania Department of Banking and Securities reported that it has reached an agreement with Future Income Payments, LLC of Irvine, Ca. ("FIP," f/k/a Pensions, Annuities and Settlements, LLC) and its owner Scott A. Kohn to provide restitution and other relief to more than 300 Pennsylvania residents who took out loans offered unlawfully by FIP.
Previously, the department had ordered FIP to cease and desist from conducting business in Pennsylvania as an unlicensed consumer lender in violation of the commonwealth's Consumer Discount Company Act and Loan Interest Protection Law.
Among the terms of the agreement, FIP will:
- Within 30 days, make restitution and offer written explanation to consumers whose borrowing is defined in Section 33 of the order;
- Recalculate monthly payments to consumers whose borrowing is defined in Section 34 of the order;
- Within 30 days, notify credit reporting agencies to remove negative reports on borrowers it had filed;
- Cease and desist from collecting interest in excess of 6 percent from any Pennsylvania resident, or transferring current accounts to third parties; and
- Modify all marketing materials to ensure Pennsylvania residents are not offered financial products from FIP;
"The Wolf Administration is pleased that we could secure the rights of these Pennsylvanians who were enticed into an unlawful scheme," said Secretary of Banking and Securities Robin L. Wiessmann. "We are also grateful to our colleagues at the Pennsylvania State Employees' Retirement System and the Pennsylvania Public School Employee's Retirement System, who provided technical assistance to our legal staff. This outcome demonstrates the benefit when state agencies can marshal their resources and work together to protect consumers."
The Consent Agreement and Order can be found online [PDF]: www.dobs.pa.gov/Documents/Enforcement%20Orders/2018/050218_FutureIncomePayments.pdf
The department's May 2017 order against FIP, which includes consumer complaint information, can be found online [PDF]: www.dobs.pa.gov/Documents/Enforcement%20Orders/2017/051917_FIPfkaPAS.pdf
Consumers who believe they may have been unlawfully charged interest or fees by FIP and who have not received restitution or been contacted by FIP can contact the department's Consumer Services Office at 1-800-PA-BANKS or file a complaint online: www.dobs.pa.gov/Consumers/Pages/File-a-Complaint.aspx
MEDIA CONTACT: Ed Novak, 717-783-4721
SOURCE Pennsylvania Department of Banking and Securities
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