by Structured Settlement Watchdog
Apparently someone has a "bee in their bonnet" for structured settlement brokers who purchase structured settlement payment rights. judging solely on records of a Google search for "list of structured settlement brokers who purchase in force contracts".
If the searcher is in the structured settlement industry then I tell him or her to wake up. Given the fact that financial planners are well organized and marketing acquired structured settlement payment rights why are you wasting your time?
The focus should be on:
- Enforecable secondary marketplace standards regarding solicitation of structured settlement annuitants. Does the same or similar standard that applies to marketing to seniors apply here? I know I've been barking about this for years. But where are we?
- Understanding the difference between obligations to a buyer of structured settlement payment rights versus the obligations to the seller of structured settlement payment rights.
- The obvious potential conflict of interest if you represent a buyer of a structured settlements that you placed.
Something the industry should be thinking about...
What are the ethical considerations for a structured settlement broker or a plaintiff attorney buying structured settlement payment rights from his own client if the amount of cash offered exceeds that which can be obtained in the secondary market?
Personal injury attorneys are already buying structured settlement payment rights (although there is no evidence that it is from their own clients) deals and as I've reported recently one in Florida even advertises that he buys structured settlement payment rights and has published on the subject. The ship has already sailed folks.
Learn from another legal market segment. In 2005, shortly after a prominent Buffalo New York attorney's law license was suspended for 6 months for "advancing financial assistance to clients in a matter not related to the expenses of litigation" the entire pre-settlement funding industry exploded. Some actively practicing New York plaintiff attorneys have financial interests in these companies and/or invest on pre settlement loans on a case by case basis.
The American Legal Finance Association (ALFA), was founded in 2004 to anticipate and respond to issues arising in the emerging legal finance industry, especially in areas related to ethical and transparent business practices. In addition to its work in this area, ALFA strives to become the liason with the public and the media so that they may better understand the true nature of the non-recourse legal finance industry, as well as the service its member-companies provide.
A number of pre settlement funders are already in the structured settlement primary market directly or indirectly, via investment.
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