Legal Newsline

Thursday, September 19, 2019

Virginia alleges loan shark company charged consumers 183% interest

By Mark Iandolo | Mar 20, 2018

RICHMOND, Va. (Legal Newsline) — Virginia Attorney General Mark R. Herring announced a lawsuit March 7 against Future Income Payments LLC, FIP LLC and their owner, Scott Kohn (collectively, "FIP"), for allegations of charging consumers illegal loans with interest rates as high as 183 percent annually.

"These companies and their owner took advantage of Virginians who earned their pensions through years of dedication to our nation's armed forces and as civil servants,” Herring said in a statement. “These men and women served our commonwealth and our country, and they deserve better than to have their life savings drained by an illegal, but cleverly disguised, predatory loan.”

Herring discussed how the defendants operated their alleged scam.

“By disguising their loans as sales, these companies tried to get around important laws that protect seniors and retirees on fixed-incomes from financial exploitation,” he said. “I filed this suit to help these Virginia veterans and retirees get back their savings, and to hold these companies and their owner accountable for the predatory scheme they operated in Virginia."

Herring seeks restitution and loan forgiveness for consumers victimized by FIP’s alleged scam. Additionally, Herring seeks civil penalties and an injunction to stop FIP from violating the Virginia Consumer Protection Act in the future.

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Virginia Attorney General's Office