That cash now "doobie" may sound nice, BUT we opine that "Cash Now" is a blatant false advertising "honey trap" since the transactions these companies are peddling may actually take 6-8 weeks or longer due to the mandatory court approval process under a state's structured settlement protection act. 47 states currently have such seller protection laws. The most that you can get is an expensive "cash advance" on the percentage of the discounted value of your future payment being sold.
Consider that on January 13, 2009, Sequence Media's Legal Broadcast Network posted a video podcast in which Earl Nesbitt, then Executive Director of the National Association of Settlements Purchasers (NASP) was asked by interviewer Mark Wahlstrom, "So It's Not Exactly CASH NOW?", to which Nesbitt chuckled "It's Certainly Not! You're not Going To Get a Money Gram The Next Day!"
Two years later, in 2011, the ongoing debate about cash now advertising was even frothy within the structured settlement factoring industry:
"There is really no such thing as being able to get immediate cash now for structured settlement annuity payments," Prosperity Partners website August 3, 2011 10:30am EDT (emphasis ours)
"If a broker doesn't help an Annuitant who is seeking liquidity, that person may end up in the hands of the “cash now" companies that advertise on TV" - Factoring company website as of August 3, 2011 12:30pm EDT
"The marketing costs and overhead that the "cash now" companies have to recover when quoting a deal. The costs incurred by these large companies for rooms full of telemarketers, glossy brochures, law society endorsements and all those commercial spots on cable TV are passed on to annuitants in the form of reduced lump sums" -Factoring company website as of August 3, 2011 12:30pm EDT
As to the cash now pushers, based on overwhelming evidence, "cash now" simply can't be explained away as an honest mistake. A complete audit of these companies' transactions with consumers over many years to determine the length of time from contact to cash would prove the falsity of their "cash now" inducements.
Structured Settlements 4Real exposed the story of a CT woman, who started her partial structured settlement factoring deal in October 2008 and didn't get paid until late April 2009. It turned out that when the rubber hit the road the factoring company could get the funding. Eventually after the annuitant sought counsel and public pressure through blog postings was put on the factoring company, the woman was eventually paid. The funding source advertised "fast cash now". Adding insult to this unfortunate situation was that the woman was referred to the company by the same structured settlement broker who placed the woman into the structured settlement less than 2 months prior to initiating the structured settlement transfer.
This author believes an initiative to amend structured settlement protection acts to require factoring companies to post sufficient reserves to cover the deal being petitioned for prior to seeking Court approval of a structured settlement factoring transaction, is sorely needed.
Your children, young adults, seniors and the seriously injured and vulnerable, need consumer protection!
Some of these companies offer multiple product lines such as pre-settlement advances to tort victims, loan money to attorneys and make large donations to trial lawyer associations, thus blurring the lines of "what is and should never be" (nod to Led Zeppelin).