by John Darer CLU ChFC MSSC CeFT RSP CLTC
The structured settlement secondary market appears to be facing considerable disarray, with allegations of "poaching" contributing to the current state of turmoil.
Some purchasers of structured settlement payment rights are frustrated having "laid" some Grade A "eggs" in advance for sellers of structured settlement payment rights, getting people "under contract" and then getting gazumped en route to the courthouse steps. The "sunny side" is definitely not up, because in certain cases the frustration is even leading to purchasers taking legal action against sellers of structured settlement payment rights.
Is this fair dealing? Is there something unreasonable, unethical or illegal going on? Should it be? I open up the debate.
1. What is in the best interest of the consumer?
That's easy. Assuming there is no other viable cash raising alternative, a better price for a deal that is done correctly and one in which some thought goes into which payments are sold so it does not set the seller up for needless future sales makes sense.
2. Do large cash advances and other swag create a legal and/or moral obligation on the part of the seller?
3. Does the answer change once Company A lays out cash for legal fees to file a petition for transfer? Should it?
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