by Structured Settlement Watchdog®
Should every state in the United States require more comprehensive structured settlement factoring disclosures like those employed by the State of Florida?
The State of Florida structured settlement factoring disclosure requires, at paragraph E, an "itemized listing of all broker's commissions, service charges, application fees, administrative fees, processing fees, closing costs, referral fees, administrative fees, legal fees, and notary fees and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the Payee"
Compare the Florida disclosure (below) to the Connecticut disclosure Download connecticut_transfer_disclosure.pdf . I understand that my home state has a tough reputation on factoring approvals, but its required disclosure appears less comprehensive than Florida's. I'd like to see that change.
If you note the attached Florida disclosure from the Patricia Chambers case dated March 16, 2007. Download floridatransfer_disclosure.pdf, you can see how one factoring deal is broken down. The calculation in D (gross amount) applies the factoring company's discount factor to determine a gross amount. It is from this amount that charges are to be deducted and disclosed. But is it possible (and I'll need a factoring company to comment on this) that the broker/referral fees are built into the factoring company's discount rate? If so, then it would appear to be a disclosure loophole that needs closing.
If it is NOT a loophole then do, or should, such disclosures require that the identification of the person or company to whom such commissions or referral fees are to be paid?
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