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Gov. Andrew Cuomo is ordering New York’s top banking regulator to investigate “pension advance” firms. The payments by these firms are advertised as advances. However, they are really cleverly disguised high interest rate loans that target older citizens’ assets.

1. What are the benefits for the firms on insisting that they are advances rather than loans?
2. According to the New York Times, what is the range of interest rates on the “advances?”
3. What are the three options that New York has in dealing with the pension predator companies?


NYT editorial board. (2013). Pension Predators. money_ballThe New York Times, May 15 (Retrievable online at