A prominent hyena within the membership of the National Association of Settlement Purchasers (NASP) is delivering a bone crunching blow to grandma in a recently discovered business practice that will turn your stomach.
Structured Settlements 4Real will be revealing the name of this entity in good time, but here are some of things that have been learned.
Seniors and other profoundly injured people, many of whom do not have Internet access are being mercilessly preyed upon by the despicable acts of this factoring company. Those who have Internet access at least have the ability and potential to read different points of view about structured settlement factoring including warnings and caveats.
It is known that certain factoring companies give better rates when in competition that they make up for by gouging seniors, or unsophisticates who do not comparison shop.
This author has learned of a situation where the hyena in question bought some of "grandma's" structured settlement payment rights ( that were funded with an annuity issuer with an A++, S&P AAA rating) convinced grandma that it would "service her annuity". Grandma was convinced (or suckered?) to allow this servicing and the hyena paid her cash for some of her payment rights and then has making periodic payments as part of the "servicing" of the remaining annuity payments. Grandma recently decided that she might be interested in selling the remaining payments. The hyena company offered less than 1/3 of the true market value. It's doubtful that those payments needed "servicing". It is plausible that the hyena sold grandma on "the servicing" as "a convenience" so it could control the next sale.
How is this possible? Ask your state representative, ask your commissioner of consumer affairs or attorney general, ask your governor, ask your congressman, ask your senator! The lack of regulation and professional licensure and the oversight that goes along with it is the enabler of all of this. I can exfoliate and expose bad business ethics, but unless people are willing to stand up and say "ENOUGH ALREADY", many grandmothers, MANY gullible young adults or a profoundly injured people are going to get hosed.
WARNINGS TO SENIORS
- Seniors, you don't need anyone "to service" your annuity payments or structured settlement payments. There is no need to pay someone even a penny to receive your payments and pay them out to you. Does the annuity issuer charge for that? So why sign a contract pay the vig to someone else?
- NEVER TAKE THE FIRST OFFER from any factoring company like JG Wentworth, Peachtree Settlement Funding, Stone Street or anyone else where your contact to that company emanates from a television or radio ad you saw or heard.
- Always seek a competing offer and/or offers.
- Seek financial advice only from a professional who has no financial connection to the factoring company
- There is no such thing as a restructured settlement. It is a marketing ploy.
TO BE CONTINUED.