Complaint Review: Life Partners Inc.

LPI Partners sent a letter on October 14, 2014 to its investors demanding payment for managerial services for 2013-2014 for $255 (my original investment on the viatical was $5,000).  Say what?  There was NEVER any verbiage in the original two documents regarding any right to impose future charges.  And it's even more infuriating that LPI is trying to bill in arrears for services I didn't even know I was getting.  LPI served as the agent to enable purchases of portions of a life insurance policy of an individual who was HIV positive/diagnosed with AIDS in 1995. He was not expected to live more than 18-24 months.  That was 19 years ago.  I'm happy to report the individual is still alive, but LPI has been nickel and diming its investors for hidden costs that were never mentioned in the contract.  In fact, paragraph 3.01 of the Policy Funding Agreement states:

"LPI'S fees for all services provided in the performance of its duties shall be complete and inclusive in the policy purchase deposit and the PURCHASER will not incur costs of any type beyond the amount tendered as the policy purchase deposit."  It further states, "After purchase, LPI shall have no further specific duties to Purchaser, but LPI shall use its best efforts to assist Purchaser, if requested, in any way possible."

So how can LPI bill me for a service I never requested?  A second 3-page letter was sent by LPI thirteen days later as, I'm sure, their investors replied with disbelief and disgust at this hidden charge.  I'm so glad I'm not alone in my anger at this company for trying to bill its investors just because it has had extravagant legal fees in the last two years due to lawsuits, etc.  If you read articles on the Internet about this company, one can conclude LPI might be getting ready to go bankrupt and this is its last-ditch effort at staying afloat.

I, for one, do not plan on sending this company one more penny.  I've been paying $18 quarterly to pay for the life insurance premiums for the past 17 years since the HIV insured has lived beyond two years.  By the way, this also was never mentioned orally or in the contract that we would incur costs for insurance premiums if this scenario was to develop.  When I wrote a letter back in 1998 about not wanting to pay for my percentage of the insurance premiums, Brian Pardo, the Chief Executive Officer, retorted back with a snotty letter about my signing a contract that said I warranted that I'm sophisticated in financial matters, etc.  That's fine.  That part of the contract is about my ability to lose my initial $5,000 investment and have no need of liquidity of the investment.  I always knew I could love $5,000. 

At this point, I've paid an additional $1,244 in insurance premiums for a total of a $6,244 investment.  If the insured should die tomorrow, I will be paid $6,106.  A loss of $138.  If I start paying $255 annually and the insured lives another ten years (which is highly feasible), that would be an added loss of $2,550 along with another ten years of insurance premiums totalling $720.  This is ridiculous.  LPI needs to admit they made a mistake buying HIV patients' life insurance policies (which they no longer do for obvious reasons) and return their investors' monies.  We were misrepresented and I refuse to participate in their extortion.

Please feel free to share any info or experiences regarding this LPI madness.  Thank you.