Structured Settlements 4Real®Blog 2026

NJ Bill A5695: New Structured Settlement Factoring Rules Explained

Introduced October 19, 2026, NJ Assembly Bill 5695 would:

1. Require Registration

Structured settlement factoring companies would need to be registered with the State of New Jersey.

2. Mandate a $50,000 bond per company and a $10,000 fine for non-compliance

3. Triple disclosure timing from 3 to 10 days before a payee signs a structured settlement transfer agreement. Disclosure requirements to be added

• Effective annual interest rate
• Right to independent advice, and
• The ability to shop competing offers

4. NJ Assembly Bill 5695 Articulates 14 Prohibited Acts

The bill creates 14 prohibited acts for structured-settlement purchasers, transferees, and their employees or representatives, aimed at preventing unlawful transfers, deceptive practices, and pressure on payees.

1. Completing a transfer without meeting all legal application requirements.
2. Failing or refusing to fund a court-approved transfer.
3. Acquiring payment rights without complying with the law, including obtaining required court approval.
4. Intentionally filing a transfer case in the wrong court. [i.e Forum Shopping]
5. Paying an improper commission or finder’s fee for arranging a transfer, subject to limited exceptions for purchase-company personnel and ordinary transaction expenses.
6. Knowingly using materially false or misleading advertising about products or services.
7. Coercing, bribing, or intimidating a payee to enter a transfer agreement, including offering gifts, loans, credit, advances, or other inducements.
8. Defrauding a payee, party, or interested person in a transfer, including through forgery or false identification.
9. Improperly intervening in another pending transfer proceeding when the company is neither a party nor an interested party, except in the bill’s narrow specified circumstances.
10. Knowingly soliciting a payee already pursuing a pending transfer with another company in order to induce cancellation of that transaction, unless no hearing has occurred within 90 days.
11. Failing to dismiss a pending transfer case when the payee requests dismissal.
12. Using a check-like or payment-like document to solicit a prospective payee.
13. Including a first-refusal right or purchase option in transfer documents for the payee’s remaining payments that are not part of the current court proceeding.
14. Improper communications with a payee or related person: continuing after being told to stop; contacting them at an unusual or known inconvenient time, generally before 8:00 a.m. or after 9:00 p.m.; or repeatedly contacting them to annoy, abuse, or harass.

The bill separately also prohibits companies from directing a payee to a particular independent adviser. Violations can lead to suspension or revocation of registration, or an injunction barring the company from filing or pursuing transfers in New Jersey.

5. Expand Court Scrutiny before approving Structured Settlement Transfers

• Expand court scrutiny before approving transfers, factoring in age, mental capacity, prior transfer history, and public benefit eligibility. Guardians ad litem would be required for minors or those with cognitive impairments

Read NJAssembly Bill 5695

Related Reading

NJ Structured Settlement Annuitant About to Get Shafted in Middlesex County NJ – Structured Settlements 4Real®Blog December 17, 2020 (<-SAME DISTRICT AS SPONSOR OF THIS BILL!)

Chirico-ry Dickory Docked | Factoring Lawyer Suspended for 3 Months For Conflict of Interest, – Structured Settlements 4Real®Blog September 28, 2020

NJ Association Of Justice “Partners” With Structured Settlement Factoring Company – Structured Settlements 4Real®Blog July 12, 2019

CBC Settlement Funding and Mental Health Issues – Structured Settlements 4Real®Blog April 19, 2019

Burlington County NJ Judges Approve 3 Structured Settlement Transfers in 3 Months for Annuitant with TBI! – Structured Settlements 4Real®Blog February 1, 2019