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Tag: “Maryland structured settlement”

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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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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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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In One of Several Lawsuits Against Factoring Company, Maryland Attorney General Weighs In on Proposed Settlement of Class Action

In One of Several Lawsuits Against Factoring Company, Maryland Attorney General Weighs In on Proposed Settlement of Class Action

The Maryland Attorney General’s office has sought to weigh in on a proposed settlement of a class action against factoring company Access Funding, with the AG saying that the structured settlement payees who make up the class should receive more compensation that the proposed deal calls for. That’s the gist of a Baltimore Sun report (Attorney General’s office and attorneys spar over settlement for lead victims, by reporter Carrie Wells) that appeared today, which is the date of a scheduled hearing…

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Court Rules For Maryland Attorney General, Denies Factoring Company’s Motion to Dismiss Lawsuit

Court Rules For Maryland Attorney General, Denies Factoring Company’s Motion to Dismiss Lawsuit

As described in this Secondary Insurance Market Blog post from May, 2016, a little more than a year ago, the Maryland Attorney General filed a lawsuit that alleged that factoring company Access Funding, LLC, along with other defendants, made misrepresentations to Maryland courts when the company obtained more than 100 court orders approving transfers of structured settlement payment rights, and that those orders therefore should be invalidated. The Attorney General said that Access Funding engaged in unfair practices that included targeting…

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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…

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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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Washington Post Applauds Maryland Attorney General’s Lawsuit

Washington Post Applauds Maryland Attorney General’s Lawsuit

The Washington Post, in an editorial this past weekend, applauded the lawsuit filed by the Maryland Attorney General against factoring company Access Funding. Wrote the Post: READ MARYLAND’S lawsuit against companies that profited from purchasing structured settlements from lead-paint-poisoning victims, and you will understand why Attorney General Brian E. Frosh (D) said the circumstances made ‘my blood boil.’  The most vulnerable people – young, economically disadvantaged, financially unsophisticated and cognitively impaired – were aggressively targeted and swindled of money that…

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Senator, Congressman Ask IRS Commissioner for Information about Structured Settlement Factoring

Senator, Congressman Ask IRS Commissioner for Information about Structured Settlement Factoring

A U.S. Senator and a member of the House of Representatives have written to the Internal Revenue Service to ask for more information about how the IRS monitors structured settlement factoring. The letter from Sen. Tom Carper of Delaware and Rep. Elijah E. Cummings of Maryland to IRS Commissioner John Koskinen asks the following: Structured settlement transactions that fail to obtain court approval must be reported on Form 8876.  Since the form was first submitted to the Office of Management and…

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