A company that recently purchased income streams from veterans and other pensioners has agreed to pay more than $2 million in debt relief to resolve allegations that it made predatory and illegal loans to Massachusetts consumers, Attorney General Maura Healey recently announced. The company has also been barred from making these loans in Massachusetts in the future.

Under the terms of the assurance of discontinuance, filed in Suffolk Superior Court last week, Future Income Payments LLC (FIP), formerly known as Pensions, Annuities and Settlements LLC, will convert its current contracts with consumers into interest-free loans. Any consumer who has already paid in excess of the principal balance borrowed will receive a refund for any overpayments.

Through the alleged scheme, 85 state consumers who entered into contracts with FIP received upfront funds ranging from $1,800 to more than $40,000. In exchange, the FIP deducted a portion of the consumers’ pension payments from their bank accounts each month. Many of the consumers were veterans receiving military pensions and the investigation revealed that FIP was charging consumers interest rates exceeding the statutory limit.