by Structured Settlement Watchdog
A California attorney who dispenses independent financial advice to annuitants considering selling structured settlement payments to raise cash called me today. Apparently an annuitant didn't like the fact that his "independent financial advice" was not to sell ("was a bad deal"), so the annuitant sought other "independent financial advice" until they heard what they wanted to hear.
To top it off the factoring company attempted to stiff the attorney providing the "independent financial advice"
It's nice when a statute has teeth in it!
Here's the relevant section of the California Insurance Code.
California Insurance Code Section Section 10139.5 concerning structured settlement transfers (structured settlement factoring transactions):
(d) All court costs and filing fees shall be paid by the transferee.
(e) No later than the time of filing the petition for court approval, the transferee shall advise the payee of the payee's right to seek independent counsel and financial advice in connection with the transferee's petition for court approval of the transfer agreement, and shall further advise the payee that if the payee retains counsel, a licensed certified public accountant, or a licensed actuary in connection with a petition for an order approving the transfer agreement, that the transferee shall pay the fees of the payee's counsel, accountant, or actuary, regardless of whether the transfer agreement is approved, and regardless of whether the attorney, accountant, or actuary files any document or appears at the hearing on the application for transfer, in an aggregate amount not to exceed one thousand five hundred dollars ($1,500). The transferee's accountant, counsel, or actuary may not advise the payee.
(f) The court shall retain continuing jurisdiction to interpret and monitor the implementation of the transfer agreement as justice requires.