Settlement Capital’s The Factoring Channel has released a video podcast produced by the Legal Broadcast Network (LBN). Towards the end, it includes a brief discussion on structured settlement factoring transaction compensation for settlement brokers. In the interview with Mark Wahlstrom and Settlement Capital’s General Counsel, Matt Bracy, the emphasis is placed on the need for full disclosure.
The Need for Full Disclosure of Factoring Compensation by Settlement Planners
Matt Bracy states that if you add value one can argue that you deserve compensation. Bracy has also previously stated that a broker’s compesation comes directly out of the tort victim’s bottom line. Thus the need for full disclosure.
In saying “Lots of people participate. If none of these people were compensated, the deal wouldn’t happen. I am not sure that Bracy intended to throw the structured settlement broker or settlement planner’s compensation into an omnibus statement. I agree with Bracy that to get the deals through the Court approval process there is a need to hire legal counsel and for the tort victim in a predicament that is an essential cost. But is he also saying or implying that if the structured settlement broker or settlement planner wasn’t compensated that the structured settlement factoring transaction wouldn’t happen? I doubt it.
The fact is that a structured settlement broker CAN help out the tort victim pro bono without participating financially in the deal at a time when the tort victim is in a pinch.
Readers, the reason this topic is getting any press is that if you scan the websites and marketing materials of those people that tort victim’s and their lawyers work with, and have trusted, in the structured settlement and settlement planning community, you woud be hard pressed to find anyone, except this author’s company, Mark Wahlstrom and those on the Structured Settlement Clean Vendor List and the “Those That Do” List that have taken a public stand either way.
If it’s ethical and you know it, clap your hands, stomp your feet and tell the world about it
Why not just say “this is one of the services our company provides”?
Outsiders looking into the structured settlement industry now know that people have been engaging in an activity that has been largely covert. And, for “those that do”, why are the only people who are actively speaking out on this activity the factoring companies themselves? What does that say about you?
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