by Structured Settlement Watchdog
Referring to yesterday’s discussion of Structured Asset Funding’s in-house counsel Robert Ostrov’s explanation of structured settlement factoring, a competitor offers the following response:
“The comparison of discount rates to credit card rates is a bit absurd and seems to be a way for Mr. Ostrov to justify why his or other structured settlement factoring companies charge such high rates. Any company in the industry has the ability to provide rates under 10% (emphasis added). Here is another list of reasons this comparison is absurd:
- Credit card interest rates are determined by an individual’s personal credit score (and other factors)
- Discount rates in factoring transactions are determined by a companies (sic) financial rating (most life companies retaining a A to AAA rating)” Andrew Cravenho, Settlement Quotes, LLC
Cravenho also states that high average effective discount rates are the result of “the unwillingness to shop around by most annuitants and the low ball and readjust pricing models
For consumers who have no alternative but to go down the cash now path, remember that the higher the effective discount rate, the less money you will receive for selling payments.
- Selling A Structured Settlement? Get The 411 on Cash Now. Don’t Be a Victim
- Independent Professional Advice (IPA) for Structured Settlement Sellers
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