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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.  

Proposed Structured Settlement Factoring Transaction: ‘Troubling’, ‘Unconscionable’, ‘Unjustifiable and Unsupportable’, Says Court

Proposed Structured Settlement Factoring Transaction: ‘Troubling’, ‘Unconscionable’, ‘Unjustifiable and Unsupportable’, Says Court

“Troubling.” “Unconscionable.” “Unjustifiable and unsupportable.” These are some of the terms used by a New York judge, in an opinion issued last month, to describe a proposed transfer of structured settlement payment rights. Justice Jeffrey Allen Spinner issued the opinion in the case of Matter of BofI Federal Bank v. Casey, Index No.: 2013-63262, 2014 N.Y. Misc. LEXIS 281, 2014 NY Slip Op. 30197(U) (N.Y. Sup. Ct. Jan. 17, 2014).  One key portion of the opinion includes the choice adjectives…

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Commentator Calls Wentworth IPO ‘Glimpse Into The Types Of Financial Structures That Existed Prior To The Collapse Of Lehman Brothers’

Commentator Calls Wentworth IPO ‘Glimpse Into The Types Of Financial Structures That Existed Prior To The Collapse Of Lehman Brothers’

The initial public offering of JGWPT Holdings, Inc. – parent company of J.G. Wentworth and Peachtree Settlement Funding – was completed last week (as described here). But prior to the IPO, at least one commentator offered some criticism of the financial aspects of the deal. Writer Antoine Gara wrote for thestreet.com that “J.G. Wentworth’s IPO provides a rare glimpse into the types of financial structures that existed prior to the collapse of firms like New Century, Lehman Brothers and Bear…

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What Does Pension Factoring Business Have To Do With Credit Unions? Article Explains The Need To Offer Alternative Funding Sources

What Does Pension Factoring Business Have To Do With Credit Unions? Article Explains The Need To Offer Alternative Funding Sources

Credit unions need to do more to find ways to provide more small loans, and to create alternatives for people who might turn to more predatory lenders, like those in the pension factoring field, says the author of an article that appeared in a recent Credit Union Journal. Jim Jerving authored an article entitled Why CUs Need To Find More Ways To Just Say Yes To More Small Loans, appearing in the September 23rd edition of Credit Union Journal.  Said…

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Pension Factoring Likened To Payday Loans ‘In Sheep’s Clothing’

Pension Factoring Likened To Payday Loans ‘In Sheep’s Clothing’

Yet another story about pension advances, from earlier this year, began this way: “Pension advances, also called pension sales or pension buyouts, are also being called ‘pay day loans in sheep’s clothing’ and are the latest scam to hit retirees.” That’s from an article from moneynews.com.  The article, entitled “Pension Advances Nothing More than Payday Loans in Sheep’s Clothing“, is available here. Some earlier Secondary Insurance Market Blog posts on pension factoring are collected at this post.