by Structured Settlement Watchdog
Factoring companies managing structured settlement payments should sort out all issues openly before a big servicer crashes and leaves everyone else to clean up the mess like a bad game of financial hot potato.
Please read my previous post on the servicing of structured settlement payments by factoring companies.
Questions to Answer About Structured Settlement Payment Servicing
- If a factoring company is "servicing" the entire structured settlement, but only assigned the structured settlement payment rights to a portion, what happens to the unassigned "serviced" payments if the factoring company goes belly up?
- What role does the bankruptcy trustee have in such cases and is there any possibility that the structured settlement recipient's payments could be delayed for any reason, or that any extra cost could be levied on the structured settlement recipient as the result of the bankruptcy of the "servicer"?
- What disclosures, if any are given to the structured settlement recipient at the time the servicing agreement is set up? What advantages are there to the structured settlement recipient to agree to servicing?
Given J.G. Wentworth's published precarious financial position and strong bankruptcy rumors, and the rumors that others are having trouble funding their deals, this is a timely and important question.
Preliminary research indicates that certain annuity issuers might support servicing by factoring companies, as they prefer not to divide payments.
Please tell me that isn't true about any current structured annuity issuers!
I'm wondering why Patrick Hindert has chosen to focus on detailed commentary about a Paralympian wheelchair racer and other topics while neglecting an important issue tied to his recent role as the factoring industry's on-site representative within the NSSTA.
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