BOSTON (Legal Newsline) — Future Income Payments LLC (FIP), a company that purchased income streams from veterans, agreed to provide debt relief of $2 million after allegations of illegal loans, Massachusetts Attorney General Maura Healey has announced.
According to the allegations, the company conducted a scheme that affected 85 consumers in Massachusetts that entered contracts with FIP. FIP purportedly charged interest rates far exceeding the statutory limit, often exceeding 100 percent.
“This is yet another example of predatory lending by a company trying to illegally profit off of vulnerable people, in this case retired veterans and other retirees living on fixed incomes,” Healey said. “We will continue to work to ensure that all Massachusetts consumers are treated fairly and not exploited by these practices.”
FIP agreed to convert its current contracts into interest-free loans. Additionally, any consumer who has already paid more than the balance owed will be eligible for a refund.
Assistant attorney general Lydia French and legal analyst John-Michael Partesotti, of Healey’s Insurance and Financial Services Division, handled the case.