by Structured Settlement Watchdog ®
Small structured settlement payment streams still attract buyers, but with the steep fees they charge, it’s like trading a whole sandwich for just the crust—sellers are definitely not getting the better deal.
Due to the fixed costs involved in a structured settlement factoring transaction, such as legal fees for court hearings required by state structured settlement protection acts, administrative fees charged to the buyer by the annuity issuer, and the profit margin for the buyer and/or their investors, the seller will likely need to sell more than the amount initially required to raise the desired cash.
For example, I received a call in the last few months from a woman who was soliciting bids to raise $2,000 to pay for a funeral of one of her parents. The amount she’d have to sell was in well in excess of what she needed due to the attendant transaction costs. It did not seem to make sense. I suggested that the annuitant hold off selling her structured settlement payments, wait for the payments which were due to arrive a short time after and work with the funeral home to come up with better payment arrangements.
Note: “Buyer” in this context refers to a buyer of structured settlement payment rights from annuitant who owns them.
Last updated January 28, 2026
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