Browsed by
Tag: “best interest”

Alabama Court Rejects Settlement Factoring Deal, Awards Attorneys’ Fees to Insurers

Alabama Court Rejects Settlement Factoring Deal, Awards Attorneys’ Fees to Insurers

An Alabama court this month rejected a factoring company’s attempt to obtain judicial approval of a transfer of structured settlement payment rights – in a deal that would have traded more than $800,000 in settlement payments for an immediate payment of $4,000 – and awarded attorneys’ fees to the insurers that pointed out to the court how the factoring company failed to comply with applicable law. In CBC Settlement Funding, LLC v. Scott, Case No. CV-2017-092576.00, 2018 Ala. Cir. LEXIS…

Read More Read More

In Calling For Ban on Settlement Factoring Transactions by Lead Poisoning Victims, Law Professor Says Current Laws Are Inadequate

In Calling For Ban on Settlement Factoring Transactions by Lead Poisoning Victims, Law Professor Says Current Laws Are Inadequate

Current laws regarding the sale of structured settlement payment rights are inadequate to protect lead-poisoning victims. So says law school Professor Karen Syma Czapanskiy in her recent article, “Structured Settlement Sales and Lead-Poisoned Sellers: Just Say No”, in the Virginia Environmental Law Journal (36 Va. Envtl. L. J. 1). The University of Maryland School of Law professor argues that sales of structured settlement payment rights by lead poisoning victims should be banned. Professor Czapanskiy offered a number of criticisms of…

Read More Read More

Consumer Financial Protection Bureau Sues Factoring Company Over Structured Settlement Transfer Deals, Alleges Violation of Federal Law

Consumer Financial Protection Bureau Sues Factoring Company Over Structured Settlement Transfer Deals, Alleges Violation of Federal Law

In the latest development involving structured settlement factoring transactions that have come under scrutiny in Maryland since 2015, the Consumer Financial Protection Bureau has filed suit against factoring company Access Funding, LLC, alleging that the company engaged in unfair and deceptive practices that are prohibited by federal law. The transactions involve Maryland structured settlement payees who agreed to sell structured settlement payment rights to Access Funding companies in the past five years, and whose deals were approved by court orders in…

Read More Read More

Texas Courts of Appeals Opinion at Odds with Other Judges on What ‘Protection’ Means Under A Structured Settlement Protection Act

Texas Courts of Appeals Opinion at Odds with Other Judges on What ‘Protection’ Means Under A Structured Settlement Protection Act

The various districts of the Texas Court of Appeals have considered a number of cases relating to the Texas Structured Settlement Protection Act.  In a recent opinion, a panel of the Texas Court of Appeals for the Fourteenth District came out with some views that are at odds with an opinion from last year from a panel from the Seventh District.  The more recent opinion also stands out as being at odds in other ways with other opinions addressing structured…

Read More Read More

CFPB Rejects J.G. Wentworth’s Challenge to Investigative Demand

CFPB Rejects J.G. Wentworth’s Challenge to Investigative Demand

Consumer Financial Protection Bureau Director Richard Cordray this month signed an order rejecting J.G. Wentworth, LLC’s petition for an order to set aside or modify a CFPB civil investigative demand. In the order, Cordray said that the CFPB in September, 2015, has issued a civil investigative demand (CID) to J.G. Wentworth, stating in the DIC that it had been issued “to determine whether persons involved in advancing funds in exchange for the rights to future payments from structured settlements or…

Read More Read More

Factoring Business Under Scrutiny In Washington Post Story, ‘How Companies Make Millions Off Lead-Poisoned, Poor Blacks’

Factoring Business Under Scrutiny In Washington Post Story, ‘How Companies Make Millions Off Lead-Poisoned, Poor Blacks’

The Washington Post today featured a front page story on structured settlement factoring, appearing in print editions under the headline “Cashing in off poor lead-poisoning victims” and in the on-line version with this headline: “How companies make millions off lead-poisoned, poor blacks”. The focus is on the Maryland Structured Settlement Protection Act, and a structured settlement payees whose underlying claims derived from lead-poisoning, including some who, according to the story, suffer from brain damage as well as those who can…

Read More Read More

New York SSPA Opinion: Judge Takes Note Of Some Additional Points

New York SSPA Opinion: Judge Takes Note Of Some Additional Points

A New York judge recently denied a request for court approval of a proposed transfer of structured settlement payment rights, saying that the transfer would not be in the payee’s best interest and was not fair and reasonable.  See New York Judge: Not the Court’s Job to Solve Factoring Company Problem ‘By Simply Rubber-Stamping’ Forged Orders. Without such approval, the proposed transfer is not effective, as per the statutory provisions of the New York Structured Settlement Protection Act. In the…

Read More Read More

Supplemental Information – When Inconsistent With Previous Court Filings – May Undermine Factoring Company Transfer Request

Supplemental Information – When Inconsistent With Previous Court Filings – May Undermine Factoring Company Transfer Request

Sometimes, proposed transfers of structured settlement payment rights lead courts to ask questions about the details of the transactions – and that may, in turn, lead the petitioning factoring company to file additional information for the court. And sometimes, that additional information is inconsistent with the originally-filed papers – and may lead the court to reject the transaction. A 2012 case from California illustrates this situation. The court in In Re: Dosty, No. 34-2012-00132061, Superior Court, Sacramento, California (Calif. Super….

Read More Read More

California Court: Factoring Transaction Not In Payee’s Best Interest

California Court: Factoring Transaction Not In Payee’s Best Interest

An unemployed, disabled, single mother’s best interests would not be served by the sale of nearly $100,000 in structured settlement payments in exchange for an immediate lump sum of $40,000, a California trial court judge ruled a few months ago. One additional fact noted by the court was that the payee did not show that she had any source of income – other than the structured settlement payments – for living expenses for her and her daughter. In the case…

Read More Read More

Revised Oregon SSPA Also Includes New Professional Advice, Cooling Off Provisions

Revised Oregon SSPA Also Includes New Professional Advice, Cooling Off Provisions

The Oregon Structured Settlement Protection Act (“Oregon SSPA”) is one of forty-eight state structured settlement protection acts (SSPAs) – every state has one, except for Wisconsin and New Hampshire. Dating back to 2005, the Oregon SSPA originally followed, for the most part, the model legislation that is in place (with some modifications) in most states. Last year, the Oregon legislature decided to revise the Oregon SSPA, and the revisions were signed into law and went into effect January 1, 2014….

Read More Read More