by John Darer® CLU ChFC MSSC RSP CLTC
The revelation that a number of companies that purchase structured settlement payment rights from American consumers who sell existing structured settlements scour court records throughout the country, as a means for sales lead generation, places the validity of privacy statements of the purchasers and cash now brokers into question.
It is so easy for anyone to go to the website of the Superior Court in Orange County California, for example, and for a small fee, obtain private and possibly protected information* about an American consumer that is available because the person has gone through a court approval process and the proceedings and documents are a matter of public record. This information is available 24/7.
Many settlement purchaser websites post a privacy policy, but we question the validity of all of the statement once the deals are completed.
Are those statements flawed since the buyer has knowledge of the public disclosure of the information? Can a company make such a statement in good faith, for example, when it has participated in a partial sale of structured settlement payment rights? Companies that scour court records for sale leads obviously have no excuse. Furthermore,
What are the responsibilities of purchasers to make up front disclosures to sellers of structured settlement payment rights that going through with the structured settlement sale means that the paperwork for the transaction can be accessed by anyone on line, or by anyone who contacts the court and pays a copying fee?
For example, "I understand that if I sell my structured settlement payment rights to settlement purchaser that my name and this transaction are a matter of public record".
At the very least, this issue warrants an in-depth examination by the National Association of Settlement Purchasers.
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