by Structured Settlement Watchdog
This author has become aware of a Connecticut woman who was referred for factoring by a structured settlement broker who is a member of the National Structured Settlement Trade Association who ended up suffering significant payment delays.
The woman settled her personal injury case last summer with a structured settlement from American International Life Assurance Company of New York as part of her recovery. Within a few months she realized that she she needed more cash and was referred for factoring by the structured settlement broker who had the duty to represent her interests in creating the structured settlement
The process to factor 240 monthly payments of $1,600** for a promised amount of $150,000 (an effective discount rate of about 12.03%) to Structured Asset Funding (more on that later in this post) started on or about October 23, 2008. She claims she was told that the process would take 2-4 months. Structured Asset Funding advertising asserts claims that it is "a national leader in providing FAST cash now service from your structured settlements and annuities". The nightmare unfolds…
On or about January 20, 2009 the CT judge approved the structured settlement factoring transaction, but it was represented to the CT Woman that American International Life Assurance Company of New York had some issues that delayed closing, that were subsequently resolved and on February 23, 2009 there purportedly was a "closing" during which time the Connecticut woman was promised that the money would be released within 5 days.
Needless to say the money HAS NOT been released according to what we understand to be the terms, purportedly numerous promises have been made as to when payment would be made after the closing and those time lines have passed. I understand from the structured settlement recipient that the livid structured settlement broker has been actively involved in trying to resolve this and I understand that intermediary was no longer returning calls . We believe that Structured Asset Funding may be unable to fund the deal almost 6 months after the process started.
I understand that as a result of what has been promised not being paid the Connecticut woman's utilities have been cut off, and she is in danger of losing her home. To add to her stress she has an elderly relative on oxygen.
April 2, 2009 correspondence to the structured settlement recipient from the factor's representative stated "My client is working diligently and taking all available action to close on your client's transfer as quickly as possible.I firmly believe that my client is not ultimately responsible for your client's predicament".
This author has ranked on Structured Asset Funding for years due to its promotion of cash now which essentially cannot be done (due to the need for Court Orders under states' structured settlement protection acts, in this case Connecticut's SSPA) and the "maxim" that high end sports cars and boats as legitimate reasons to sell your structured settlement.
A search of the records of the Connecticut Secretary of State seems to show that Structured Asset Funding is not registered to do business in the state
Download C.O.N.C.O.R-Structured Asset Funding 4-14-2009
According to published information it has been within the purview of the Attorney General of the State of Connecticut Richard Blumenthal to sue out of state companies for failing to register with the Connecticut Secretary of State PRIOR to doing business in Connecticut.See C.G.S. 34-233 entitled "Transacting Business Without Registration".This author believes that factoring intermediaries and factoring companies should be registered with the Secretary of State in each state that they do business, BEFORE they conduct business with citizens or businesses in the state AND that professional licensure should be mandatory.
** please note that this represented less than 1/5 of the woman's total monthly payments
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