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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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Maryland County Changes Rules for Settlement Protection Act Matters

Maryland County Changes Rules for Settlement Protection Act Matters

When a court is considering whether it is in the interests of an individual to sell their rights to receive future structured settlement payments, the court must hear from that individual in person. And the lawyer or financial advisor who counseled that individual must also appear before the court. Those are two of the conclusions of the Prince George’s County Circuit Court, which adopted rules requiring that structured settlement payees appear at hearings on proposed transfers of structured settlement payment rights, according to reports,…

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Report: Payee Sues Independent Professional Adviser Over Maryland SSPA Matter

Report: Payee Sues Independent Professional Adviser Over Maryland SSPA Matter

  A woman who was entitled to receive structured settlement payments is suing the attorney who acted as her “independent professional adviser” saying he failed to meet with her and provide adequate advice about selling her rights to future structured settlement payments, according to a report in a Maryland legal and business publication. The lawsuit alleges that the woman is illiterate and mentally disabled, according to the report, which also described the Maryland Structured Settlement Protection Act as requiring payees “to…

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Court Denies Request for Approval of Proposed Structured Settlement Factoring Deal Due to Lack of Proof of Notice, Statement as to Professional Advice

Court Denies Request for Approval of Proposed Structured Settlement Factoring Deal Due to Lack of Proof of Notice, Statement as to Professional Advice

New York’s Structured Settlement Protection Act (the “New York SSPA”, which is codified at New York General Obligations Law § 5-1701 through 5-1709), provides that a transfer of structured settlement payment rights is not effective without court approval, and without compliance with other statutory requirements. Among those requirements are the following: The payee must have “been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such…

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Lottery Transactions Lead To Years-Long Litigation

Lottery Transactions Lead To Years-Long Litigation

This month, the Texas Court of Appeals, Eleventh District (Eastland), released an opinion involving litigation over lottery transactions. The transactions occurred in 1996 and 2001, and were between, among other parties, the lottery winners, Alfredo and Idalia Galindo, and a purchaser of the lottery payments, Prosperity Partners, Inc. The latter transaction was approved, pursuant to the Texas Lottery Act, by an order of a Texas court in 2001. When the transactions went awry, the Galindos filed suit.  That litigation began…

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Judge: Structured Settlement Factoring Transaction Show ‘What Appears To Be Nothing More Than An Illusion of Good Faith and Fair Dealing’

Judge: Structured Settlement Factoring Transaction Show ‘What Appears To Be Nothing More Than An Illusion of Good Faith and Fair Dealing’

A New York trial court last month denied a request for court approval of a proposed transfer of structured settlement payment rights, as described in posts here and here. The opinion, from Suffolk County Supreme Court Justice Jeffrey Allen Spinner, is from 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), where a transferee, or factoring company, filed a petition under…

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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….

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Oregon Structured Settlement Protection Act Now Includes Non-Exhaustive List Of Factors To Consider In Reviewing Factoring Deals

Oregon Structured Settlement Protection Act Now Includes Non-Exhaustive List Of Factors To Consider In Reviewing Factoring Deals

The Oregon Structured Settlement Protection Act (“Oregon SSPA”) has now been revised, effective this month, and includes additional requirements concerning the information factoring companies must include in petitions (as described here) and a description about evidence that court may want to consider at the hearing (as described here). In addition, the new Oregon SSPA includes a list of considerations that the court may want to take into account – or, as the revised Oregon SSPA states, “when determining whether the…

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