pension advances

Retirees Borrow Against Pensions at Loan Rates Up To 106%

Posted on 04/29/2013 by |Money and Work | Comments

Bulletin Today | Money & SavingsUPDATE: Last week, we cited a report by The New York Times that a growing number of older adults are using their pensions as the basis to borrow cash — and paying interest rates as high as 106 percent. That report caught the attention of New York banking regulators. They’re now probing 10 companies that do pension advances, the Times reported Tuesday. Benjamin M. Lawsky, who heads the Department of Financial Services (DFS), calls pension advances ‘‘nothing more than payday …