CFPB and brand brand brand New York Department of Financial solutions Sue Pension Advance Companies for Deceiving Consumers About Loan Costs
Businesses Hid Loan interest levels and costs and Deceived Consumers About Other regards to the offer
WASHINGTON, D.C. вЂ” the Consumer Financial Protection Bureau (CFPB) and the New York Department of Financial Services (NYDFS) filed a lawsuit in federal court against two companies, Pension Funding, LLC and Pension Income, LLC, and three of the companiesвЂ™ individual managers for deceiving consumers about the costs and risks of their pension advance loans today. The CFPB and NYDFS allege that the businesses duped customers into borrowing against their retirement benefits by deceptively promoting the item being a purchase in place of a loan and neglecting to reveal interest that is high and charges. The CFPB and NYDFS are searhing for to finish the unlawful techniques, to avoid further customer damage, and also to get redress for customers as well as other relief that is monetary.
вЂњThese businesses duped customers into taking right out retirement advance loans by deceiving them concerning the regards to the offer,вЂќ said CFPB Director Richard Cordray. вЂњWe are attempting to place an end into the unlawful techniques these firms are employing to offer their product that is bogus to veterans as well as other pensioners.вЂќ
вЂњAs outlined inside our grievance, the defendants used blatantly misleading methods to harvest the hard-earned retirement benefits of seniors and armed forces personnel,вЂќ said Anthony J. Albanese, Acting ny Superintendent of Financial solutions. вЂњThis scheme included false advertising, unlawful loans at high rates of interest, as well as other abusive techniques which our Department just will not tolerate. (more…)