Bulletin from “Snottingham Forest”: Press releases containing highlights of purported largesse by high discounting structured factoring companies and pictures of their founders at glamorous cocktail parties are specious in my opinion. Robin Hood and his band of merry men could at least lay claim to redistribution of wealth (“Rob from the Rich and Pay to The Poor”).
High discounters in the factoring industry are opportunists who take advantage of unsophisticated people who are down on their luck and unaware of market efficiencies available to them.
How credible is the “largesse” of these companies when they make their money by charging discount rates to the down and out that are perhaps double the best rates in the market? How about simply being charitable and giving more cash, NOW, to the poor bastard that finds the misfortune of having to sell structured settlement payments?
In an October 2010 blog RSL Funding reported that an executive at another structured settlement factoring company testified that his/her company “acquires most of its customers through extensive television and cable advertising. Research in the structured settlement factoring industry has shown that customers acquired through television are less likely to be informed of current industry rates, and are subsequently overcharged the most”. (emphasis added)
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