A new bill in Missouri protects the state's public retirees from predatory lending involving pension advances. House Bill 1217 took effect Aug. 28, allowing retired public employees who accept these misleading deals to take legal action against the businesses that offer them.
“Pension advances prey on the financially vulnerable, offering an up-front lump sum in exchange for part or all of a public pension, and they are generally accompanied by exorbitant fees and interest rates,” said Missouri State Treasurer Clint Zweifel. He noted that the products are essentially "payday loans on steroids," because consumers are borrowing against a pension instead of a paycheck. This can put their retirement in jeopardy and cost them more over time.