by John Darer CLU ChFC CSSC RSP
I continue to be pleased to see more settlement purchasers cleaning up the industry image by educating the public instead of extolling the virtues of "cash now". One such example is Annuity Transfers Ltd's 4 part series educating the public on what is involved in Selling Structured Settlement Payments by its CEO, Robert Thompson.
Here is an excerpt from part 3 of the "selling structured settlement payments" education series.
"It is understood that a purchaser pays for something today, but must wait until some future date to receive payment. Unlike the purchase of a car or a house, this transaction is scrutinized by a third party, and is not approved in court unless it represents a real “win-win” situation. Purchasers cannot assume that courts will approve all structured settlement transactions, just as sellers should not assume that all offers to purchase payments are constrained by the legal process.
No one involved in the structured settlement transfer process should assume anything. Sellers use the requirement for court approval to their advantage, while accepting the reality that no sale is possible without a fair price. The market would not exist and will not exist in the future unless the purchaser is willing to take on some level of risk — but all risk comes at some cost.
One of our sources tells us that Annuity Transfers, Ltd tends to be one of the more competitive and ethical factoring companies out there. Nevertheless we caution sellers to not rely on the Court's approval as being the benchmark indication of the deal being a "win-win" for you and the buyer. The Court IS NOT duty bound to find you the best deal. The Court must only determine if the price is fair and that a proposed sale, or transfer, of structured settlement payment rights is in your best interest and the best interest of your dependents (f you have any)