by Structured Settlement Watchdog™
What is Structured Settlement Funding? This little phrase is sprouting all over like spring daffodils!
As we know structured settlements are defined under the Internal Revenue Code Section 5891. We also know that structured settlements are funded by an insurance product called a structured settlement annuity, or on rare occasions, by obligations of the United States government. Placing an insurance product requires an insurance license, applicable carrier appointments and, if operating as a business entity, a certificate of authority to business in a particular state.
I've noticed that factoring companies are now using the words "structured settlement funding" to describe what they do in their online advertising. This is inaccurate and yet another blatant attempt by these folks to capitalize on the popular words "structured settlement" or " structured settlements" to the detriment of consumers. Given the Internal Revenue Code definition of structured settlements the only entities that fund structured settlements are defendants, insurance companies of defendants, trustees of qualified settlment funds and/or assignment companies of each. The same United States Internal Revenue Code section describes what they do as a "factoring transaction"
Clearly these folks "want to play with our toys because their toys aren't shiny enough". Fortunately we have truth in advertising laws if only regulators would enforce them. These are the same regulators who are asking for our votes in this year's elections. Until regulators start hammering these folks to play at their own side of the sandbox they will continue to come up with with ways to play with our toys and consumers (constituents) will be confused or frustrated.
Those factoring companies using "settlement funding" are also inaccurate. For example, as reported here on 3/29/2006, Peachtree Settlement Funding was portrayed (inaccurately) in the London Sunday Times as having funded Katrina settlements in such a manner that a reasonable person could have thought that they were actually paying homeowners' claims to families.
"Advertisers, if left to their own devices, pretty much act like high school boys bragging on Monday morning. The difference is, with advertising someone actually gets screwed. Unfortunately it's us."
Mad Dog on the AlterNet 4/26/2000
Leave a Reply