Virginia AG orders civil penalties against loan company
RICHMOND, Va. (AP) — Virginia’s attorney general has ordered civil penalties and debt relief totaling $50 million against a loan company in light of a lawsuit accusing it of making illegal, high-interest loans to more than 1,000 veterans and retirees.
Attorney General Mark Herring said in a news release Thursday that Future Income Payments and owner Scott Kohn violated the Virginia Consumer Protection Act, disguising illegal, high interest loans as “pension sales” that could provide pension holders with a quick lump sum of cash.
The lawsuit filed in March alleged the company made illegal loans concentrated in northern Virginia and Hampton Roads, home to large populations of retired veterans and civil servants with pensions.
The complaint cited one veteran who received a $5,500 loan from FIP and had to repay $40,920 over five years.