Andrew Cravenho reports on May 23, 2008 that one of his clients alleged that "cash now pusher" Stone Street Capital had bullied them in an attempt to convince them that they had no authority to speak to anyone else but them. Cravenho's post includes an interesting "comparison" between what Stone Street Capital asserts should be the criteria for selecting an organization to do business with for structured settlement factoring, and what Cravenho believes should be the criteria.
"Here are their (cash now pusher" Stone Street Capital's) requirements:
- Make sure the company has been in business for at least 15 years
- Make sure the company has a Better Business Bureau record.
- Make sure the company has completed thousands of transactions.
The requirements should be the following:
- Make sure the companies discount rates are between 8%- 11%.
- Make sure the company has a relatively low number of complaints compared to the number of transactions completed by the company.
- Make sure the company does not use skeptical sales tactics to close a structured settlement factoring transaction.
- Make sure the company does not lie on a daily basis to consumers".
Cravenho states "Being in business for 15 years and completing 1000’s of transactions does not guarantee the consumer that they are going to get the best deal". I agree with Cravenho on this statement. Peachtree Settlement Funding is the defining example of that.
Regulators and Legislators ought to be motivated to act in reading the following chilling observation from Cravenho, an MBA who, as a factoring broker and operator of the Settlement Quotes Factoring Exchange, is well positioned to give first hand observations of such company business practices.
"Its amazing to look at the greed and money hungry people that have such control over others".
If the rot is being observed from within isn't it time that regulators did something?
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