by Structured Settlement Watchdog
The National Structured Settlement Trade Association (NSSTA) continues to dent its own members’ credibility, in my opinion, by attempting to squeeze as much PR value as it can out of a Bronx judge’s technical error on a financial calculation, to bash a factoring company’s high discount rates when it would have been REALLY easy to do so without the misleading information.
NSSTA, in this author’s opinion, is also acting in contradiction to its recent branding initiative which was to include judicial education.
The structured settlement watchdog has brought this matter to the attention of the Executive Director, the Vice Executive Director and the entire NSSTA Board of Directors, including the following email sent November 15, 2010 at 12:04pm EST:
Excerpt of John Darer’s email to NSSTA Board
“It was good seeing some of you who were in Las Vegas. Now it’s time to get back to biz. The post on Ruiz is not accurate and for reasons unknown on further analysis there appears to be a deliberate attempt to manipulate what the Judge actually said”.
“Ruiz The Day”. Did NSSTA Embellish Judge’s Words? Why? To What End? – Structured Settlements 4Real® November 12, 2010
UPDATE: Since posting this, we heard from NSSTA Legal Committee chairman Peter Vodola of Seiger Gfeller Laurie who notes that in her opinion, Judge Ruiz refers to an annual discount rate of 14.99 percent, adding, “the discounted present value of $60,677.40 with a net payout of $17,340 would result in a final discount rate of 71.40%.” Judge Ruiz appears to obtain that 71 percent figure by dividing the net purchase price by the undiscounted value of the payments that would be transferred, and taking that number (28.6 percent) and calculating the difference.’
Note: Despite the “update” the NSSTA still maintains a title of Structured Settlement Factoring: The 71% “non solution”. The mythical 71% is what needs to be captioned! It is an illusion. Furthermore, The 14.99 rate was on the mandatory disclosure under 5-1703( of the New York General Obligations Law, that the factoring company had to submit with the application to transfer payments. It was NOT opinion.
The 1990’s Dominican hip-hop band 2 In a Room, from Washington Heights, a neighborhood not far from Judge Norma Ruiz’ courtroom, may have captured it best..
” I want to see you wiggle it*, just a litle bit”…As it Grooves
Why NSSTA continues to “wiggle it” remains a mystery. Stay tuned for a future episode of “As the Structure World Turns”
* a 1990 #1 dance hit
Related Reading
NSSTA’s “Structured Settlement Factoring : The 71% “Non Solution” Is Wide of The Mark – Structured Settlements 4Real®Blog November 6, 2010
NYC Judge Norma Ruiz Gives Peachtree Da “Bronx Cheer”! – Structured Settlements 4Real®Blog July 28, 2010
Leave a Reply