by Structured Settlement Watchdog
Re-marketing of structured settlement annuitants is a significant industry. This involves those who have sold a portion of their structured settlement to a factoring company. It is particularly big business for those that also service structured settlement payments. Re-marketing carries a much lower acquisition cost than new business.
Refresher on Servicing of Structured Settlement Payments
John Darer, as the structured settlement watchdog, has earlier covered this topic.
- Payment Servicing of structured settlements is necessary when an annuitant only sells a part of their payments.
- This is because many life insurance companies will not split structured settlement annuity payments.
- While payment servicing is in place, the annuitant cannot access the life insurer.
- Routine requests, like change of bank account, beneficiary, or address, must be handled by the servicing company. Dallas bankruptcy expert attorney Bruce Akerly has confirmed a scenario. Also, the general counsel of the National Association of Settlement Purchasers confirmed it, too.
- In the extreme case of the servicer’s Chapter 7 bankruptcy, the annuitant experience delays. Additionally, there are extra costs to protect their rights to the payments.
The Structured Settlement Watchdog was disturbed to hear from a source that some factoring companies are re-marketing the structured settlement annuitants they service, at rates less attractive than those on the open market
We have learned that some factoring companies are actually fighting their annuitants in Court hearings. This happens when presented with the lower discount rate alternatives, which are better for the annuitant. This purportedly is occurring even though the payments haven’t been transferred.
The other day, RSL Funding issued a press release. They alleged that Imperial Holdings is suing their competitors. These competitors are offering lower rates. If this were true the litigation is not listed in its S1-A. Imperial is not the topic of the information from our source. Is this a coincidence that helps frame anti-consumer behavior by servicing factoring companies?
It’s a topic that deserves further exploration and believe me we will, BEFORE it reaches biblical proportions.
We kick off our quest for the truth with this memorable ballad from “Satchmo”. If you are one of the “Pharoahs” concerned we hope you will pay attention.
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