by John Darer® CLU ChFC CSSC RSP CLTC
Queens Structured Settlement Transfer Petition served up by the “Chefs” at JG Wentworth gives Judge David Elliot bad reaction
In addition to sending back the “Rahman Noodles”, because “consumption” of same was deemed not in Rahman’s best interest, Judge Elliott’s “antacid” of choice is to call for New York legislators to amend the relevant section of the General Obligations Law, to add a discount rate cap, such as the 10% rate cap that applies to New York State Lottery deals. Simillar structured settlement tranfer rate caps exist in a few other states, like North Carolina.
The New York Settlement Protection Act is contained within New York State General Obligations Law.
Judge David Elliot’s Riposte to JG
Judge Elliot’s riposte to J.G. Wentworth’s attacked the use of the common argument that the factoring discount rates are comparable to credit card rates.
- First, please note that the structured settlement payments in this case are being made by Metropolitan Life Insurance Company, the largest life insurance Company in the United States, and one of the largest in the world and in business for more than a century.
- The judge said that Petitioner failed to adequately explain why the guaranteed nature of the annuity payout and the minimal risk involved for Petitioner justifies what the Judge deemed an “exorbitant interest rate”.
- The Judge noted “that Petitioner (Wentworth) would incur what the Court considers to be significant administrative and legal costs when entering into these transfer agreements is of little concern to the Court.
- The General Obligations Law, as well as the statutory intent of the SSPA, require this Court to protect the best interests of the recipient of a structured settlement award, not the profit margins of a company seeking access to its proceeds“.
The Matter Of The Petition Of J.G. Wentworth Originations, LLC and Allia Rahman, No. 216362011 (N.Y. Sup. Ct. Dec. 14, 2011).
“Pouring some hot water” on the story, this author would like to disclose that now and then he enjoys a good bowl of Ramen Noodles!
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