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Class-Action Complainant Alleges Scheme By Factoring Companies, With Virginia Judges, To Deprive Structured Settlement Payees of Rights to Counsel, Rights to Future Payments

Class-Action Complainant Alleges Scheme By Factoring Companies, With Virginia Judges, To Deprive Structured Settlement Payees of Rights to Counsel, Rights to Future Payments

A putative class-action plaintiff filed a complaint last week alleging that some Virginia judges were complicit in a scheme, arranged by factoring companies and their lawyer, that was designed to deprive structured settlement payees of their rights – namely, their rights to get legal advice about proposed sales of payment rights to the companies, their rights to having an impartial arbiter decide whether sales of the payees’ payments met statutory standards, and their rights to the payments themselves. The lawsuit…

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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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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…

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U.S. Senators Call for Federal Agencies to Investigate Abusive Practices of Companies that Buy Structured Settlement Payment Rights

U.S. Senators Call for Federal Agencies to Investigate Abusive Practices of Companies that Buy Structured Settlement Payment Rights

Several U.S. Senators last week issued a press release calling for federal agencies to investigate abusive practices of companies that purchase structured settlement payment rights. Senator Jack Reed, who represents Rhode Island, issued a statement saying that, following a “disturbing” investigative news article by The Washington Post, he and Senators Susan Collins and Sherrod Brown are “urging the heads of the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), the Internal Revenue Service (IRS), and the Securities and Exchange Commission…

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