Con Ed is ripping off its own retirees to the tune of millions of dollars, a proposed class-action lawsuit charges.
In papers filed in Manhattan federal court, four former employees say they were tricked into early retirement with the promise of a loan that was interest-free – but turned out to have criminally high interest rates.
“This is the biggest loan scam ever,” said their lawyer, Lenard Leeds.
He’s seeking class-action status for the case, contending that “hundreds, if not thousands” of Con Ed retirees have fallen victim to the “loan-sharking scheme.”
A spokesman for Con Edison declined comment, saying the utility hadn’t seen the lawsuit.
The suit says the affected employees had been offered a “level income option” with their retirement packages.
The option was essentially a monthly loan that would be paid out until the employee started collecting Social Security, at which point that amount would be deducted from future pension checks.
The suit says there was never any mention made of interest, so the retirees were shocked when $800 a month was missing from their pension checks, as opposed to $500.
“I’m getting by, but it’s tough,” Jim Watson, a 38-year employee who retired in 1997, said, noting that his pension check has gone from $3,500 a month to $1,900 a month.