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Tag: “structured settlement protection act”

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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State Structured Settlement Protection Acts Disfavor Transfers of Settlement Payments, Notwithstanding Wrong-Headed Comments

State Structured Settlement Protection Acts Disfavor Transfers of Settlement Payments, Notwithstanding Wrong-Headed Comments

Secondary Insurance Market Blog’s authors often come across statements that are contrary to the facts in the world of secondary insurance markets. While there are too many such comments to be concerned with them all, occasionally it makes sense to address them. For instance, the statement that a structured settlement protection act “favors” transfers of structured settlement payment rights is inconsistent with an accurate understanding of such statutes, some of which are based on legislative proposals expressly providing that these laws are…

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A Factoring Transaction Might Need Approval From More Than One Court – But The Factoring Company May Need To Provide an Explanation

A Factoring Transaction Might Need Approval From More Than One Court – But The Factoring Company May Need To Provide an Explanation

Under the laws of forty-eight states, structured settlement factoring transactions are generally effective unless and until they receive court approval, by way of a court order issued pursuant to applicable structured settlement protection act (SSPA) requirements. Sometimes, those requirements can mean that the transfer needs approval from more than one court.  A commentary on the subject describes an example this way: For example, if a factoring company proposes to acquire a structured settlement payment rights from a payee who is…

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No Interest In Annuity, So Nothing To Assign

No Interest In Annuity, So Nothing To Assign

Under structured settlement protection acts, a transfer of an individual payee’s right to receive structured settlement payments becomes legally effective only when and if a court approves the transfer. Those forty-eight states with structured settlement protection acts recognize, in those statutes, that the property being transferred by such court approval is the right to receive payments under the structured settlement agreement – and not under the annuity that is the asset that typically funds the payments. That recognition items from…

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What’s An ‘Advance’?

What’s An ‘Advance’?

In the world of secondary insurance markets, an “advance” is a payment to a customer or potential customer of a secondary market transaction.  There are other names for the term, but advances are usually made by a company in order to induce the customer to proceed with a transaction with that company. There can be many ways an “advance” can be made, and some companies advertise the fact that they offer advances – although the fine print is somehow not…

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