by Structured Settlement Watchdog
Patrick Hindert's review of the AAJ Winter Meeting in "Beyond Structured Settlements" contains inaccurate information. Hindert inaccurately refers to Strategic Capital as a structured settlement company in the list of exhibitors at AAJ. Strategic Capital is a factoring company NOT a structured settlement company, as Hindert recognizes earlier in his post. Please review the definitions below.
Structured Settlement Company
A company that engages in the marketing and placement of new structured settlement annuities, which are regulated insurance products. Included in the definition of a structured settlement company are companies that have employees or, who have independent licensed life insurance agents and brokers, whose primary business is to place structured settlements. There even once was a structured settlement annuity brokerage firm called "The Structured Settlement Company". The term "structured settlement company" is sometimes used to refer to certain life insurance companies who manufacture or issue new structured settlement annuities. A T-Bond Trust structure provider could also be considered a structured settlement company. Some settlement transfer companies, settlement purchasers or "cash now" companies, have tried to favorably position themselves by incorrectly using this term. However make no mistake, none of them can truly substantiate the claim that they are a "structured settlement company."
Structured Settlement Factoring Company
A company that engages in the purchase of the rights to receive future structured settlement payments. A transaction completed by such companies is known under the Internal Revenue Code Section 5891 as a 'structured settlement factoring transaction". Sometimes referred to as a "secondary market company" "settlement purchaser" , "cash now company", "cash flow purchaser", "transfer company" or "factoring company". Sometimes mislabeled in advertising by such settlement purchasers as a "structured settlement company". Don't be confused!
It is unfortunate that on the one hand Patrick Hindert accurately portrays Strategic Capital for what they are and THEN, in the same post, contradicts himself, in my opinion intentionally. I admonish Hindert to be responsible and not add to the consumer confusion already created by Strategic Capital business practices. Hindert called me this morning (2/15/2007) and attempted to defend himself by alleging that the list of exhibitors was obtained from the AAJ convention brochure delivered to the attendees. Even if this is true, he has refused to qualify the mistake he attributed verbally to AAJ.
Hindert continues to be an intense factoring advocate. At a presentation on working with insurers and adjusters by Ismael Acevedo of AIG, at the NSSTA Winter 2007 meeting, Hindert queried how AIG will handle such issues as factoring even through Mr. Acevedo's presentation was generic in nature as to the subject of claims. Surprisingly Hindert has not addressed issues such as the unilateral disclosure of confidential documents (including settling parties, settlement terms and amounts) to factoring companies representatives by certain plaintiff settlement planners or structured settlement brokers. Companies such as AIG bargain for those confidentiality clauses and careless unilateral disclosure could expose the disclosing party and their representatives to damages.
In his statements to me today it's obvious that Hindert possesses the mistaken belief that my mission is to "stop factoring companies". My mission is to stop bad business practices by factoring companies by making the public, trial lawyers and state and federal regulators aware how consumers can and are being hurt in the confusion. When I hear that a few attorneys are shying away from structured settlements due to the mere possibility that their clients could factor their payments clearly "Houston, we have a problem"
Read more blog posts concerning Strategic Capital Corporation: