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August 12, 2009

Who Will Answer the Question on Structured Settlement "Servicing" by Factoring Companies?

Shirts_on_clothesline_lg_clr This is an open letter to the factoring industry AND the structured settlement industry to air the dirty laundry. We all know that structured settlement servicing exists. 

What is Payment Servicing?

Servicing arises where an annuitant sells a portion of the payments rights and through a contractual arrangement ("servicing agreement") the factoring company receives the entire structured settlement payment (not just the sold portion) and passes the difference onto the annuitant. Under such circumstances the annuity issuer may refuse to speak with the annuitant because of the servicing agreement and directs calls to the factoring company. Moreover there may be a delay in the receipt of such payments by the annuitant because the payments must first pass through the factoring company.

Why are there structured settlement servicing agreements?

  • One of the allegations is that life insurance companies WILL NOT split structured settlement payments. If this is true then it may be an incredibly poor PR move in need of correction.

  • Who has experienced this and from which life insurance companies? Which current writers of structured settlement annuities are involved, if any?

  • The contrary allegation is that factoring companies do this to control the pipeline for the next factoring deal, cutting down on marketing expense and further to wall off competition.

What are the consequences to the structured settlement payee who has sold just part of their payments, if the payment servicing company is later bankrupt when it controls receipt of all of the annuitant's structured settlement payments?

This question must be answered before its too late.

This author welcomes statements from both the structured settlement industry and the factoring industry.

Posted at 04:43 AM in Factoring Company Insolvency, Factoring Company Servicing Bankruptcy, Servicing of Structured Settlements, Structured Settlement Factoring, Structured Settlement Payment Rights, Structured Settlement Payment Servicing, Structured Settlement Servicing, Structured Settlement Transfers |

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  • What Are Structured Settlement Annuities?
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  • History of Structured Settlements
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  • Firmwide Qualified Settlement Funds Debunked
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    with a stable readership that seeks credible structured settlement information, John Darer Reviews, commentary and/or opinion about topical issues related to settlement planning, targeted to lawyers, injured persons and their family members, guardians, survivors, judges, magistrates, special masters, mediators, administrators, trust companies, insurance company executives and adjusters, financial advisers, settlement professionals, financial professionals, insurance regulators, government leaders, federal and state law enforcement, buyers and sellers of structured settlement payment rights, the news media and other interested parties. 4structures.com LLC established this structured settlement blog in 2005. John Darer ®, CLU ChFC MSSC CeFT® RSP CLTC, President of 4structures.com, located in Stamford, CT 06902. John Darer is an experienced New York City area structured settlement expert, structured settlement broker, Certified Financial Transitionist, and Registered Settlement Planner. He holds insurance licenses in 45 states, has 41 years financial services experience and 31 years in the structured settlements and settlement planning space. In his capacity as a investigative journalist and commentator, and professionally, John Darer passionately believes that shining the light on a business practice is both healthy and newsworthy. It is in the best interest of injury victims, their families and their legal advisers, that the settlement planning discussion involve those that are properly trained in the topic, properly informed on the topic and, with respect to structured settlements, properly licensed and/or appointed. It has significant instructional and deterrent value to other practitioners and firms as well as those who may be caught in the cross hairs. WHAT YOU GET here is the straight stuff with a touch of irreverence and humor. We hope you enjoy and find the content to be helpful. Subscribe to the structured settlement blog feed, or a specific category feed through your blog reader, or through the Subscribe button at the top left of this page. Followers of JDDarer™ on Twitter may also receive select content. If you would like to speak with John he can be reached at (888)325-8640 Thank you for reading! Last updated July 10, 2024

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Structured Settlement Best Practices Corner

  • New York Insurance Advertising law requires the full name of the Insurer to be listed along with the city and state of the principal office. Stating that you represent these fine companies using Insurance company logos without the preceding information are also illegal
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Why Take a Structured Settlement?

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