In response to the GAO’s inquiry, the Federal Trade Commission reports it has yet to receive enough complaints to justify diverting resources to review enforcement options. Vulnerable seniors don’t have the luxury of waiting before they become the latest victims before the FTC launches a formal review.
To address this problem, we introduced legislation in October to protect veterans and federal retirees from pension advance schemes by requiring these products to be regulated the same as loans and credit cards, including enhanced, detailed disclosures and a reasonable interest rate cap.
Congress can and should take action to protect retirees from these unscrupulous practices, and our legislation, the Annuity Safety and Security Under Reasonable Enforcement Act, is a major step toward neutralizing this growing threat. These simple measures will help protect federal and military pensioners from exploitation, ensuring that after a lifetime of public service they can live out retirement with dignity.
Rep. Matt Cartwright, D-Pa., serves on the HouseNatural Resources and Oversight and Government Reform committees. Rep. Gerald E. Connolly, D-Va., serves on the House Oversight andGovernment Reform and Foreign Affairs committees.