Va. Attorney General sues lender for alleged illegal loans to vets

Mark Herring claims Henderson, Nevada-based Future Income Payments, LLC violated the Virginia Consumer Protection Act and targeted Virginia pensioners - often elderly veterans - with loans as high as 183 percent.

RICHMOND, Va. (WVEC) -- Virginia Attorney General Mark Herring says a lending company ripped off hundreds of Virginia veterans.

"We think what this company did is really unconscionable and I'm going to stand up and make sure our veterans and military service members are protected," he said.

Herring has filed suit against Henderson, Nevada-based Future Income Payments, LLC. Herring alleges the company violated the Virginia Consumer Protection Act and targeted Virginia pensioners -- often elderly veterans -- with loans as high as 183 percent.

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"These are folks that have served our country," he said. "They've defended our nation and freedom around the world, and they're living on a fixed income and pension, and they can't afford to be taken advantage of this way."

The complaint says FIP made 950 illegal loans to at least 650 pensioners in Virginia.

"In one example that we cite in our complaint, a victim thought they were going to be getting a $ 5,500 lump sum payment and then found out he was obligated to repay $40,000," said Herring, "That kind of misrepresentation that I think is prohibited under Virginia law. The company used words like 'purchase price' and 'sale' to make it seems like it was a pension sale when in fact, our complaint alleges, it was really a loan at exorbitant interest rates."

13News Now contacted Future Income Payments, LLC and spoke to a woman named Sherry. She said "the proper person" was not available, but she would ask that person to call back. So far, that hasn't happened.

Nine other states have investigated FIP for allegedly violating consumer protection and finance laws.

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