Think about a military veteran pension buyout offer to sell your VA pension to a third party in exchange for a one time lump sum payment?
You may hardly find a buyer able to buy out our pension, in a legal way, at least.
To the best of our knowledge, it isn't legal to buy out va pension.
The government, military agencies, watchdog and vets advocacy groups are investigating and hunting factoring companies trying to buy out military or government pensions.
Some unscrupulous buyout companies may offer to cash out a military pension via direct pitches to veterans - including retired (or even serving) servicemen having served in the air-force, navy or other forces - or by responding to inquiries by retirees or disabled veterans desperate to sell off their pension proceeds for cash.
Others would offer to buy out the pension payment streams from police officers, firefighters and civil government employees.
According to our understanding, this is against Federal law and perhaps also in violation of State law.
Some pension factoring companies try to circumvent the anti pension buying laws by agreeing with the pensioner to open a bank account and deposit the pension payments there.
They require access to the pensioner's bank account to withdraw the deposited money.
The payees, in return, receive a cash lump sum from the buyout companies in exchange for selling all or part of the retired person's pension payment streams.
Proponents of banning the pension buyout practices argue that factoring companies engage in illegal and dishonest activity by....
Note: the critics are referring to the pension advances as loans although factoring companies consider them transactions and payment transfers but not loans.
Military vets are largely considered as low-income people, yet their government-paid pension is viewed as a very valuable asset.
The steady pension payments are fixed income and highly secure.
No wonder factoring companies are "preying" on them and are decried by critics as predators.
In general, military service people are also being exploited and highly overcharged by a host of other services, such as:
Debt collectors, for example, are often employing apprehensive language in letters to indebted military men to pressure them to pay back their debts.
The government is cracking down on all this to protect the nation's bravest men and women.
I was recently approached by a young man offering to sell his military pension.
It was a nice plan, payment streams valued at several thousand dollars monthly.
The man told me that he was looking around and obtaining quotes from several potential buyers for some times now, but the best deal he was able to get was...
One years worth of payments paid out to him in a lump sum in exchange for buying his lifetime pension!
Well, I turned down the buyout offer, of course. I won't do illegal or illegitimate transfers.
What's the difference, indeed?
I don't have a clear answer for these questions. While it's understandable to enforce regulations especially to protect the more vulnerable, low-income, the elderly and the disabled - do pension buyouts have to be banned altogether?
Let's not forget, the Structured Settlement Protection Act was introduced for very similar reasons, to protect the interests of the injured.
Judicial approval is required, and a judge will often decline transactions that are unfair or not in the best interest of payees and their dependents.
Why can't the same be done for allowing controlled government and military pension transfers?
Finally, here are some tips for veterans who somehow to manage to sell their pension in legal ways, if such is at all possible. Make sure that...
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Insanely high charges Not rated yet
Just like people wanting to sell structured settlement payments, many are interested to sell pensions for a lump sum. I was just curious to see how …
Great Story - But No Help; Corrupt System Not rated yet
So, you can't sell your pension for upfront cash - so what to do? Who to turn to? Why is it so hard to get a simple loan then? I hear your warning and …
Pension Buyout Company Terms - and Distrusted Pension Buyers Not rated yet
Searching around on the net, I've been able to compile the following information of what military / government pension factoring companies offer / demand …