by Structured Settlement Watchdog
In Protecting From Themselves, attorney Matt Bracy reflected thoughtfully on the balance between liberty and protectionism concerning the factoring of structured settlement payments
Bracy bristles that "some today insist that the laws should be changed so that a seller must receive independent professional advice (as opposed to simply being advised to seek it), pushing this transaction even further toward the protectionist pole". Bracy bristles at the notion that people can't fend for themselves.
Here’s an excerpt from an email I received from a previous client of a renowned factoring company
"I was fleeced by XXXXXXXXXXXXX about XXXXX years ago, and though I don't know if a way exists, and trying to find a way out of it. A little about my situation:
I foolishly sold ten years worth of structured settlement payments to these crooks for $9600 (I know, not very bright, what can I say.) I thought my 10 years was up last year and changed where my payments went to myself, and they sued the crap out of me and got another three years (lawyer's fees and such, gotta love it.) I didn't have a lawyer due to my financial state (also the fact that they sued me in XXXXX, I live in XXXXX, and my structured settlement was made in XXXX.) I did, however, notice something in my structured settlement final agreement that I hadn't seen before since all this happened – I didn't have the right or ability to sell those payments to begin with. It's in the contract in plain black and white. Their lawyers read that contract (and surely saw that clause being lawyers) and screwed me anyway!
Do you think I might have any recourse to recover in any way from this situation, in light of the fact that they commited flagrant fraud in buying payments from me that I couldn't legally sell to start with?"
*************************************************************************************
Fueled by hedge fund investments, the factoring industry has exploited the absence of regulations on their advertising practices, ultimately bringing about their own consequences
When you have such irresponsible advertising and sales pitches by Bracy's industry brethren (for example a company like Strategic Capital giving away a free trip to Hawaii), unregulated affiliate marketing programs, manipulation of source code on websites (the result of which is 80% of the top Google results for the keyword "structured settlement "), veiled attacks by the factoring industry on structured annuity issuers like Allstate Life Insurance Company who seek to provide a "pick and roll" commutation discount interest rate that ultimately forces factoring companies to give consumers more favorable discounting, people like Joey Crack giving financial advice, stories we've all heard about JG Wentworth's notorious repetitive phone call torture, others trashing structured settlements with the "teeny weeny payment" exaggeration, it's no wonder that you have even some lawyers wondering whether they should even do structured settlements (for fear that their clients will be seduced to factor). THAT'S the way they all became "The Bracy Bunch"
Factoring companies should be required to obtain licensing under the jurisdiction of state insurance departments, like the viaticals
Factoring companies would then be subject to the compliance with state insurance advertising laws and standards of practice, just like the Viatical and Life Settlement brokers and even those of us licensed and regulated individuals and companies who actually create the manna on which "The Bracy Bunch" feed. I am all for the financial adviser requirement. In my opinion, let's ignore the spin; the State of Michigan meekly surrendered to the factoring companies on this issue, at the expense of its own citizens. Perhaps, if the above described chap had spoken to an independent financial adviser he might not have made what he later perceived was a bad decision. Clearly he never read what he signed.
*******************************************************************************************************************
Matt Bracy is a bright guy and he's obviously frustrated about what's going on in his industry, but the cure lies FROM WITHIN his industry.
Leave a Reply