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U.S. Chamber of Commerce: Litigation Financing Means More Lawsuits, Prolonged Proceedings, Fewer Settlements

U.S. Chamber of Commerce: Litigation Financing Means More Lawsuits, Prolonged Proceedings, Fewer Settlements

The President of the U.S. Chamber of Commerce has penned an opinion piece stating that litigation financing “leads to more lawsuits, undercuts plaintiffs’ control of a case, and unnecessarily prolongs litigation.” Lisa Rickard’s op-ed article quoted recent news reports about how litigation funders have said they “make it harder and more expensive to settle cases.” She praised the recently-enacted Wisconsin legislators who passed “the first state law requiring transparency for all third-party funding arrangements” and said that Congress should recognize…

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‘Borrowing in the Shadow of Death’ Takes a Look at Another Type of ‘Fringe Lending’ – Probate Lending

‘Borrowing in the Shadow of Death’ Takes a Look at Another Type of ‘Fringe Lending’ – Probate Lending

Here at Secondary Insurance Market Blog, we have examined legal issues involving secondary markets for insurance products from the point of view of insurers and other non-lending parties whose interests may be adversely affected by such transactions. The types of such transactions include life settlements, litigation funding, pension factoring, and secondary markets for annuities, lottery payments, and for structured settlement payment rights. Occasionally, we delve into analogous transactions – such as those for entertainment tickets, or the payday loan business…

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New York’s Structured Settlement Protection Act Falls Within Scope Of ‘Applicable Law’ In Florida Protection Act Proceeding, Says Court

New York’s Structured Settlement Protection Act Falls Within Scope Of ‘Applicable Law’ In Florida Protection Act Proceeding, Says Court

A Florida court recently rejected a proposed transfer of structured settlement payment rights, on the grounds that New York’s structured judgment law barred the transfer. The proceeding was filed by factoring company JLC Capital Funding, and sought approval of the transfer pursuant to the Florida Structured Settlement Protection Act. The Florida judge ruled that the New York structured judgment law, Article 50-B of New York’s Civil Practice Law & Rules § 5041 et seq., fell within the scope of “applicable…

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In Settlement With Maryland Attorney General, Settlement Factoring Company Agrees to Avoid Doing Business In State For Seven Years

In Settlement With Maryland Attorney General, Settlement Factoring Company Agrees to Avoid Doing Business In State For Seven Years

Accused of deceptive marketing – including supposedly sending letters to consumers on behalf of a judge who turned out to be a fictitious person – a structured settlement factoring company has entered into an agreement with the Maryland Attorney General’s office, and agreed to pay six figures in restitution and penalties. The settlement between factoring company Annuity Sold and the Maryland AG also bars the company from doing business in Maryland for seven years. The Maryland Attorney General said in…

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What Steps Should Factoring Companies Take to Ensure Non-Contravention Of Court Orders?

What Steps Should Factoring Companies Take to Ensure Non-Contravention Of Court Orders?

Forty-nine states have structured settlement protection acts – laws that say that if a person who is entitled to receive future structured settlement payments wants to sell the right to those payments to a factoring company in exchange for a more immediate (but lower) payment, then the transaction is not legally effective unless a court approves the deal. These SSPAs generally provide that a court can approve a transaction only where the court can find that such a transaction is…

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National Consumers League Praises Suit Filed Against Factoring Company by Maryland Attorney General’s

National Consumers League Praises Suit Filed Against Factoring Company by Maryland Attorney General’s

The National Consumers League this week issued a statement praising the lawsuit filed by Maryland’s Attorney General against a structured settlement factoring company over what are alleged to have been “predatory” practices. National Consumers League executive director Sally Greenberg said the NCL applauded the lawsuit by Maryland Attorney General.  According to Greenberg’s statement, “[s]tructured settlements, by their very nature, are designed to provide ongoing support to consumers who have been the victims of harmful business practices” but “[u]nfortunately, many of these…

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New York Court Says Transfer Was Not Fair, Reasonable Where Payee Was to Receive Less Than Half the Payments’ Discounted Present Value

New York Court Says Transfer Was Not Fair, Reasonable Where Payee Was to Receive Less Than Half the Payments’ Discounted Present Value

A proposed transfer of structured settlement payment rights that results in the payee receiving less than half of the discounted present value is not fair and reasonable under the New York Structured Settlement Protection Act, a New York state trial court judge ruled in a recent SSPA matter. In the case of In the Matter of 1 Apollo (Pardo), Index No.: 606049/15, Supreme Court, Nassau County, N.Y. (N.Y. Sup. Ct. Dec. 14, 2015) (Thomas Feinman, J.S.C.), Justice Feinman reviewed many of…

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Virginia Lawmakers Say Structured Settlement Protection Act Isn’t Working the Way It Should, Reports Washington Post

Virginia Lawmakers Say Structured Settlement Protection Act Isn’t Working the Way It Should, Reports Washington Post

Following up on an in-depth article about structured settlement factoring practices in Virginia, the Washington Post today said that the issue has gotten the attention of state lawmakers who intend to strengthen the state’s structured settlement protection act. The Post said that members of the Virginia legislature are considering legislative changes, because the Virginia SSPA “isn’t working the way it should to catch ‘bad actors.”  One lawmaker was quoted as saying, “Obviously the current system’s not working”. The Virginia SSPA is…

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Too Much Was Missing from Structured Settlement Factoring Papers, Said Court

Too Much Was Missing from Structured Settlement Factoring Papers, Said Court

A petition for court approval of a transfer of structured settlement payment rights is typically commenced by a petition that includes copies of the disclosure statement, the transfer agreement, a list of the payee’s dependents, and often quite a few other documents. But sometimes, courts look at the documentation and focus on what’s missing. Such was the case in a recent New York Structured Settlement Protection Act (SSPA) opinion. In the Matter of J.G. Wentworth Originations, L.L.C. (Shaw), Index No.:…

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For Those In Minerals Wells, Texas, A Talk About Risky Investments – Including Life Settlements – Is on the Calendar

For Those In Minerals Wells, Texas, A Talk About Risky Investments – Including Life Settlements – Is on the Calendar

Mineral Wells, Texas, is not too far from Fort Worth,so for those who are in that area on July 1, the Mineral Wells library will be hosting a talk about investment fraud, so potential investors know what to watch out for. Certain kinds of “risky investments”, as highlighted by the SEC, will be among the topics of the talk – specifically including “life settlement investments”, according to the Mineral Wells Index.  For more, see the link here.