Senate Committee Launches Pension-Lender Probe

Law360, New York (May 20, 2013, 2:53 PM EDT) -- A U.S. Senate committee announced Monday that it is searching for victims of potential pension-lending schemes, launching an investigation of loans in which retirees sign over benefits for cash but are hit by hidden exorbitant interest rates and fees.

Retirees ensnared by these controversial loans receive lump sums in exchange for stakes in their pension benefits, possibly agreeing, unwittingly, to illegally high repayment rates, according to the Senate Health, Education, Labor and Pensions Committee. Members of the committee Senators Tom Harkin, D-Iowa, and Lamar Alexander, R-Tenn.,...
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