If you’re a retiree receiving a pension, beware of a new scam: offers that claim to let you borrow against your pension without actually taking out a loan. Pension advance companies promises retirees quick access to cash. The catch? You’re signing over the rights to your pension — often for years.
Recently, North Carolinians have been filing complaints with the Attorney General’s Consumer Protection Division about pension advance companies. These companies disguise high-interest rate loans as pension advances, with fees and interest rates often exceeding 100 percent of the amount borrowed. One military retiree received an “advance” of $10,000 but must pay back more than $25,000 from his future pension payments.