by Structured Settlement Watchdog®
Andrew Cravenho of Settlement Quotes, LLC suggests that structured settlement factoring transactions with discount rates that exceed 20% "will become more prevalent in the near future due to the (inevitable) increase in inflation caused by the downturn in the economy".
Cravenho believes that "if a judge thinks an annuitant can receive a better deal by going elsewhere, the judge has an obligation to require the annuitant to obtain quotes from other companies before approving the transaction. It should not be a judge’s responsibility to know the overhead of a company when approving a transaction. If a different company can complete the transaction at a cheaper rate, then they should have the opportunity to provide the annuitant with the increased funds".
If judges in Bronx New York require a market survey of quotes before approving structured settlements, why not require the same when there is a structured settlement factoring transaction? Such a requirement makes sense and if made, would be sure to tweak the noses of some of the big advertising spenders like "cash now pushers" JG Wentworth and Peachtree Settlement Funding. Perhaps such a requirement would enable consumers to get a better deal if they must go down the unfortunate path of selling their structured settlement payment rights.
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