WASHINGTON, D.C. — A broker of pension assignments who allegedly violated the Consumer Financial Protection Act by offering high-interest credit to veterans, has settled with the federal government for $1, according to the Consumer Financial Protection Bureau.
In the consent order resolving the charges against broker Mark Corbett, the bureau alleges Corbett falsely led consumers to believe his contracts that involved veterans' pensions were enforceable, when federal law states veterans' pensions are "unassignable."
Corbett also falsely led consumers to believe he was purchasing pension payments but instead was making a "high-interest credit offer," according to the bureau. The CFPB also alleges Corbett distorted when consumers would get their funds and did not disclose the related interest rate, the bureau said.
According to Corbett's sworn financial statements and inability to pay, the $1 settlement was agreed upon, the bureau said. The settlement also includes Corbett being permanently banned from brokering future agreements involving veterans selling a "future right to an income stream," the CFPB said.