by Structured Settlement Watchdog
A proposal would cap discount rates in structured settlement factoring deals like North Carolina and curb forum shopping by requiring transfer petitions to be filed in the petitioner’s home jurisdiction, rather than anywhere in the state.
Members of the Florida Senate and House of Representatives are about to face pushback from irritable members of the National Association of Settlement Purchasers, independent “cash now” advocates, and others opposing the pending bill.
Sumter County Courthouse, has become a popular Big Top where cash now pushers on unicycles ride in to get some “cotton candy”a
Florida’s Sumter County Courthouse in Bushnell and the court room of Judge Michelle Morley has become, with respect to structured settlement transfers, what could be described as a popular “circus” where cash now pushers ride in on their unicyles to get their “cotton candy”].
As I posted on March 3, 2014 in The Sumter County Florida Structured Settlements Three Ring Circus
Factoring Company HIGH BEAMED Sumter County’s Soft Touch in its communications to sellers
Mainstreet Structured Settlement Funding said in its ” selling Structured Settlements Guide (retrieved March 16, 2014) “One of the courts that hears these cases is the Sumter County Florida court. Sometimes that particular court does not require that you appear before the judge in person”. The statement was made in the context of Mainstreet comparing Florida to West Virginia and Maryland where an “in person” hearing IS required.
Nothing could be clearer about Sumter County Florida being a forum shopping venue of choice and the efforts of Sumter County to make it more attractive to cash now pushers:
Clerk of the Court Gloria R. Hayward’s web page stated at the time of publication of this post, “This is a special project undertaken by our Records Management and Technical Services staff to provide access to case types identified as Foreclosure or Structured Settlements.
Sumter County Accomodated Structured Settlement Factoring Companies
“This has been done in an effort to improve public access to these bulk case types that have recently been a matter of EXCESSIVE public inspection” – Gloria Hayward Clerk of the Court Sumter County web page March 3, 2014
Its understandable why cash now pushers would be opposed to the bill because some would be out of business in Florida, as they may have been in North Carolina when rates in that state were capped several years ago. For those with bloated business models, that rely on financing and cannot obtain it at a cost that makes it economically efficient to operate within the proposed cap of 5 points over the prime rate, it presents a game changer. For those with a high concentration of Florida business, who cannot adapt, it could cost them.
The question is what is best for consumers? Wouldn’t an interest rate cap benefit consumers? Cash now pushers may argue that their un-capped discount rates are still more favorable than credit card rates, but regulators should ignore the syncophants and stay focused.
Let’s talk about what the pending Florida bill fails to address and should (among other things)…cash incentives and aggressive follow up on structured settlement annuitants that would be illegal, in FLORIDA if provided in connection with the placement of insurance or securities.
Cash Now Pushers Scrape Court Records
Cash Now Pushers then use this information from the Court Records to target structured settlement annuitants in aggressive ways
One way is to send out checks as a cash advance, or notice of “rip off” from official looking but phony government entities. It’s Pollyanna to believe that the secondary market can self regulate.
The checks are followed up with phone calls aggressively “encouraging”, possibly even harrassing the annuitant to cash them in an effort, to tie up the annuitant. Some cash now pushers are falling all over themselves to offer the checks (we’ve seen a case where stored value debit card was sent).
Brandjacking Examples
Einstein Structured Settlements website, which it has been observed typically draws traffic by employing a strategy of brandjacking competitors of its beneficiary, Fairfield Funding.
On one of its web pages, Einstein uses Seneca One’s telephone number twice on the same page [much as it did with Peachtree-see Einstein Structured Settlements Unethical “Brandjacking” Continues], to promote its cash advance of $5,500 to compete with Seneca One’s $5,000 cash advance. Download 800-519-6031 Einstein SS uses Seneca One’s Phone twice on same page 3-15-2014. If I licensed insurance agent did that in Florida in conjunction with the sale of an annuity it would violate the law. There is one regulatory gap in need of closing! The Einstein Structured Settlements phone number 888-497-0724 continues to resolve to Fairfield Funding and resolved to the personal voice mail of Rick Hazen, the Sales Manager for Atlanta based Fairfield Funding on March 15, 2014.
Be sure to watch part 1 and part 2 of my interview with Eddie Stone, of Edward Stone law, a former general counsel of JG Wentworth about the state of the structured settlement secondary market and how it can be improved, now up on our YouTube channel.
I look forward to observing the response of the National Structured Settlements Trade Association and its members as well as unassociated members of the structured settlement primary market to the Florida legislation.