If THEY Think It's OK to "Take Money" Out of Annuitants' Mouths, Then Why Aren't These Structured Settlement Brokers and Settlement Planners Disclosing It?

ATTENTION ATTORNEYS! 

HOW WELL DO YOU KNOW THE STRUCTURED SETTLEMENT BROKER OR SETTLEMENT PLANNER YOU ARE DOING BUSINESS WITH?

1. Are the structured settlement brokers and settlement planners that you are doing business with selling the names of plaintiffs (that you have referred them to set up structured settlements) to factoring ("cash now") companies or for any other purpose?  Have you asked? Has the firm posted a privacy policy?
2. Are you doing business with a structured settlement broker or settlement planner whose ethics permit them to make "undisclosed gratuities" off the desperate souls who must unfortunately sell their structured settlement payment rights? This is the type of person who, for example, would rather tack on $1,500, $2,000 or more to the cost of the "cash now" deal rather than simply make an uncompensated referral and let the unfortunate soul make a mortgage payment or pay off a credit card. These sellers may or may not be your former clients, but do you think it's right? Have you asked if your structured settlement broker, structured settlement planner, or financial planner and/or his or her company participates in this activity?
3. Have you asked the people you do business to make an affirmative statement of their position regarding referrals to factoring companies, compensation from those referrals to factoring companies and selling lists of your clients that have agreed to structured settlements? Here's ours (click here).  And it will shortly be refined even further. At 4structures.com, LLC we also post an independently reviewed and TrustE certified privacy statement. Take a look at the websites of firms in the structured settlement or settlement planning industry. WHERE ARE THEIR DISCLOSURES on these issues?

Comments:

• In my opinion, those that do not disclose already know that what they are doing is not publically acceptable to most trial lawyers so, they operate out of the shadows.  Why else would they not disclose?  Why wouldn't they at least include a paragraph of disclosure of their factoring activities on their web site?
• There is no state licensing requirement to receive these fees, there is no statutory filing of referral fees as there is commissions for annuities, life insurance and other insurance products, even though many of the settlement professionals, settlement planners and structured settlement brokers are, upon information and belief, taking a percentage. Other than 46 states requiring Court approval under their structured settlement protection acts, to avoid a 40% Federal excise tax, the business of factoring structured settlements is essentially unregulated.
• Since YOU attorneys are the conduit to the structured settlement planner or structured settlement broker who is engaging in this activity how would this activity by third parties ultimately reflect on you?

THIS IS A VERY SERIOUS PROBLEM... A POTENTIAL POWDER KEG... CHOOSE WHO YOU REFER CLIENTS TO CAREFULLY.