by Structured Settlement Watchdog®
Structured settlement factoring companies acquire structured settlement payment rights from annuitants in exchange for a lump sum of cash. The process is supposed to be orderly. A judge must determine that the structured settlement factoring transaction is in the best interest of the seller and any applicable dependents, before any transfer occurs in order to comply with federal and state law.
Unfortunately it has emerged through allegations in multiple lawsuits as well as other information and belief, that more than one company may be circumventing laws to the detriment of sellers.
When the transfers occur the transferee either assigns its rights to another investor or other investors, or the receivables may be held by the transferee, aggregated and sold as a security to institutional investors.
What happens when the assignee finds out that the transferee has breached their contact with the investor because the order which gave them the right to receive payments was procured on the basis of a fraud?
What happens when a transfer order is vacated?
What happens if the investor is a settlement trust on behalf of another injured party, perhaps placed by a settlement planner or financial planner as a recycled "annuity" and the court order is vacated?
The black hole of regulation in the structured settlement secondary market
There could be one hell of a SH*T storm coming.