by Structured Settlement Watchdog
SuttonPark Capital says it has a "strong broker network and are actively encouraging referrals from brokers or other individuals with clients in need of immediate cash. SuttonPark purchase structured settlements, annuities, lotteries, casino, or jackpot winnings. SuttonPark Capital offers competitive fees for all referrals". SuttonPark Capital states that it "assists its Brokers with sales and marketing support, including brochures and display materials". It says that it "offers very flexible terms to ensure maximum returns to its Brokers" (emphasis ours)
Our question is how "ensuring maximum returns to its brokers" impacts the cost to sellers of structured settlement payment rights? PennantPark Investment Corporation includes SuttonPark Holdings, Inc. on its schedule of investments as of March 31, 2011 (excerpt below). Included is a total of $11,000,000 in various forms of financing with a current coupon of 14.00%
I'm not suggesting that the company, or its investors are doing anything wrong. There is nothing wrong with setting up a lemonade stand on one corner and charging $1.00 per cup while someone else can set up another one on another corner that charges 50 cents (assume for the purpose of this example that we're not talking about Midway Georgia, or RIverside Park , New York City, and that the appropriate permits have been obtained). If someone is REALLY thirsty and passes by the $1 stand , will they walk an extra block to save 50 cents? What if they don't know there is a lemonade stand down the block that is 50% cheaper? If someone is ignorant or doesn't shop around is it tough darts on them.? On the other hand they may perceive a value for the extra money spent because for example, they were REALLY thirsty, or the higher priced lemonade carries a designer label, a certain cachet or is organic.