by John Darer CLU ChFC MSSC CeFT RSP CLTC
The Consumer Financial Protection Bureau (CFPB) published an update to its guide for people who have disability, personal injury or structured settlement payments on February 2, 2018.
What should I know before giving up my monthly disability, personal injury or structured settlement payments in exchange for a one-time lump sum payment?
Answer by the CFPB:
Dealing with companies that offer lump sum payments for your disability, personal injury or structured settlement payments can be very risky. You could receive much less cash than your settlement is worth. Some companies target people with disabilities who have structured settlements. If you receive a flyer or solicitation promising fast cash or a lump sum payment for your monthly or periodic payments, be aware! Consider all options, including talking to people you trust with your finances, or your own lawyer or financial counselor, before trading your future payments for instant cash.
Get a second opinion or an independent evaluation from a trusted source, your own attorney, or a financial adviser. Be cautious of recommendations from the company trying to get your structured settlement.
Read the full CFPB Guide here
What is the Consumer Financial Protection Bureau?
Consumer Financial Protection Bureau (CFPB), is a U.S. government agency whose role is to make sure banks, lenders, and other financial companies treat you fairly.