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Author: Peter Vodola

Revised Connecticut Structured Settlement Protection Act Goes Into Effect, Addressing Probate Matters

Revised Connecticut Structured Settlement Protection Act Goes Into Effect, Addressing Probate Matters

The Connecticut Structured Settlement Protection Act is one of 49 state statutes that provide that a transaction involving the sale or loan or the right to receive future structured settlement payments is ineffective unless the purchaser meets certain requirements such as providing a disclosure statement to the individual seller. Perhaps the most important requirement is that the purchaser (the “transferee”, in the words of the statute, which is usually a factoring company) must begin a court proceeding and bring the transaction before…

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What’s Happened With the Litigation Over Settlement Factoring in Maryland

What’s Happened With the Litigation Over Settlement Factoring in Maryland

Maryland has been at the center of attention since the Washington Post began its series of news stories about structured settlement factoring. Some of what’s happened in Maryland involve changes in legislation (see here) or judicial rules (see here). Another front has been in state court, where two lawsuits have been at the center of attention, when the topic is structured settlement factoring. One lawsuit was brought by the Maryland Attorney General, which sued factoring company, Access Funding, LLC., the…

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Federal Court Dismisses Some, But Not All, Counts by CFPB Against Structured Settlement Factoring Company

Federal Court Dismisses Some, But Not All, Counts by CFPB Against Structured Settlement Factoring Company

A federal district court this month dismissed four of five counts of a complaint brought by the Consumer Financial Protection Bureau against a structured settlement factoring company’s allegedly abusive business practices. The ruling by District Judge J. Frederic Motz of the U.S. District Court for the District of Maryland, in Consumer Fin. Proc. Bureau v. Access Funding, L.L.C., Civil No. 16-03759-JFM, 2017 U.S. Dist. LEXIS 149519 (D.Md. Sept. 13, 2017), lets stand one count concerning allegedly illegal business practices arising…

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What’s Happened With the District of Columbia’s Proposed Structured Settlement Protection Act

What’s Happened With the District of Columbia’s Proposed Structured Settlement Protection Act

Secondary Insurance Market Blog has been posting about the things that happened following the publication, beginning in August, 2015, of a series of Washington Post articles about allegedly predatory practices in the structured settlement factoring industry.  (See the posts here, here, here, and here for more.) As some of those posts describe, the legislatures of Maryland and Virginia revised their state structured settlement protection acts (SSPAs) to provide for more protections for payees (and others) who might be impacted by such…

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Class-Action Complainant Alleges Scheme By Factoring Companies, With Virginia Judges, To Deprive Structured Settlement Payees of Rights to Counsel, Rights to Future Payments

Class-Action Complainant Alleges Scheme By Factoring Companies, With Virginia Judges, To Deprive Structured Settlement Payees of Rights to Counsel, Rights to Future Payments

A putative class-action plaintiff filed a complaint last week alleging that some Virginia judges were complicit in a scheme, arranged by factoring companies and their lawyer, that was designed to deprive structured settlement payees of their rights – namely, their rights to get legal advice about proposed sales of payment rights to the companies, their rights to having an impartial arbiter decide whether sales of the payees’ payments met statutory standards, and their rights to the payments themselves. The lawsuit…

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What’s Happened With the Virginia Structured Settlement Protection Act

What’s Happened With the Virginia Structured Settlement Protection Act

Following the series of Washington Post articles that began in August, 2015, about structured settlement factoring, a number of legislators and other officials focused their attention on efforts to rein in factoring company business practices that were questionable, or worse.  (See the Secondary Market Blog post here about the activity in the two years since the first article appeared.) While many of the articles focused on practices in matters filed in Maryland, under that state’s structured settlement protection act (SSPA), some articles…

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What’s Happened with Maryland’s Judicial Procedures for Structured Settlement Factoring Cases

What’s Happened with Maryland’s Judicial Procedures for Structured Settlement Factoring Cases

Even before the Maryland legislature adopted a revised Structured Settlement Protection Act (as described in this post), the Maryland judiciary had responded to the attention focused on alleged abuses in structured settlement factoring company practices in that state. Maryland’s courts had adopted a new statewide rule for matters filed under the state’s SSPA, to go into effect January 1, 2016. Maryland’s judicial rule for SSPA proceedings requires: Payees to appear in court at hearings (a required later also reflected in the…

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Minnesota Attorney General – Like CFPB – Sues Pension Advance Company

Minnesota Attorney General – Like CFPB – Sues Pension Advance Company

The Minnesota Attorney General has followed the lead of the Consumer Financial Protection Bureau and filed suit against a pension advance company, alleging that the company violated state lending laws, took unfair advantage in other ways, when it had veterans and senior citizens sign their pension rights to the company in exchange for immediate, but highly-discounted, cash payments. The Minnesota AG has sued Future Income Payments, LLC, which is the same company that is being sued by the CFPB over alleged…

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What’s Happened with the Maryland Structured Settlement Protection Act

What’s Happened with the Maryland Structured Settlement Protection Act

As described here, it’s been two years since the Washington Post began a series of stories about the structured settlement factoring industry and alleged factoring company abusive practices, such as those involving the targeting of cognitively-impaired structured settlement payees. One change that has taken place in the past two years is that Maryland has adopted a revised structured settlement protection act. In fact, Maryland’s SSPA, some say, is the strictest of the 49 state structured settlement protection acts.  It  requires…

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A Lot Has Happened in Two Years – And There Could Be More to Come

A Lot Has Happened in Two Years – And There Could Be More to Come

On August 25, 2015, The Washington Post ran a front-page article about structured settlement factoring.  The story focused on the alleged practices of a factoring company that aimed to buy the structured settlement payment rights due to be paid to cognitively-impaired lead-paint-poisoning victims in Baltimore. The article appeared under the headline, “How companies make millions off lead-poisoned, poor blacks” with the subheading “Lead paint victims are lured by quick cash and unload their financial future for dimes on the dollar“.  (The article is…

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