GAO: Clip 1: Relationships among Pension Advance Companies

Updated : Dec 10, 2019 in Articles

GAO: Clip 1: Relationships among Pension Advance Companies


>>Recent media coverage shows that some companies are encouraging retirees to borrow against their pensions– generally referred to as pension advances– which may be an attempt to take advantage of financially distressed retirees. A GAO investigator called 19 pension advance companies, posing as a federal, military, or private-sector retiree receiving a pension, to request information about the companies and their pension advance products. These companies used multistep pension advance transactions that included various other parties. This clip illustrates that relationships among these companies are not always transparent to retirees. [ Phone dialing ]>>”As you go to the– their web sites, they’re– they’re all going to be us pretty much. And, uh–and–and–and, uh– “>>”They’re all going to be– “>>”Anybody that–correct.”>>”Oh, you mean doing the same thing? Go ahead. I’m sorry.”>>”No. I mean, they’re all going to be the same company pretty much. There’s only a couple of companies that do this.”>>Oh, OK. OK. Cuz I saw a lot of different names.”>>”That’s right–all right– yeah, but any– any–any–you know, we’re–we’re– again, we’re–we prob–we probably– 80 percent of all the pensions that get sold in this country are–are through us. There’s a couple other companies out there.”>>To learn more about federal oversight of pension advance transactions, see GAO-14-420, which you can find on our website, gao.gov.

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