by Structured Settlement Watchdog
The Battle for West Virginia continues . A bipartisan group of West Virginia delegates is pushing a new bill that adds restrictions for structured settlement transfers (structured settlement factoring transactions).
West Virginia Delegate Ron Walters
has introduced a new bill that would require courts to appoint a guardian ad litem, to protect and represent the claimant's interests in structured settlement factoring transactions. Under current law, an attorney is not required to be present on behalf of the person cashing in their settlement.
The structured settlement recipient consumer would also have to prove clear and convincing evidence that he or she is experiencing an immediate financial hardship in order to sell rights to their structured settlement payments. Such standard is already common for those seeking to make withdrawals from pension plans prior to retirement. Finally, the so-called factoring companies (who purchase structured settlement payment rights) would be required to pay their own attorneys' fees in court.
The new bill differs slightly from the one that didn't make it past the WV House Banking and Insurance Committee with a discount rate cap that would have effectively killed factoring in WV due to the rate cap being much lower than the typical factoring company's cost of money. This author understands that issue to have been compromised to a factor above prime rate. After its introduction the new bill was referred to the WV House Judiciary Committee.
"They thought it'd put them out of business, which is exactly what I want to do," Walters was quoted by this morning's Charleston Daily Mail . "Everyone's seen the commercials about getting cash now from a structured settlement payment. They're just preying on people."
A number of factoring companies feel the bill is bad for consumers in West Virginia, because it will reduce the number of opportunities and add costs to structured settlement factoring transactions. Consider that the millions spent on TV advertising is also a cost factor that has to be built into certain companies' quotes. Walters was quoted, again in today's Charleston Daily Mail "This bill is a step in the right direction," Walters said. "If an individual is really hurting and needs the money, they'll be taken care of."
For Charleston Daily Mail coverage please click here
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