by Structured Settlement Watchdog
Failure to comply with the best interest standard in the state's structured settlement protection act is unfortunately more than just a rare occurrence in some places. The results are tragic. I have learned of multiple annuitants who have been approved for as many as 5-6 structured settlement factoring transactions in a single year. In two cases two deals were approved a month apart! That's nuts.
This is not a failure of structured settlements, it is failure to enforce the structured settlement protection act by judges who are tasked with doing so. It is also highlights that there is more work to do with state legislatures in protecting structured settlement annuitants.
In many of these cases the annuitant did not appear in court. The best interest standard requires that a judge must determine that the structured settlement transfer is in the best interest of the structured settlement annuitant and the interest of any applicable dependents. In my opinion, based on the cases where I was annuitants in the last 8 months, if the annuitant appeared in court and if in each of these cases the best interest standard was upheld, then there is no way a judge approves so many deals, if any.
Adding to the financial devastation, there are transactional fees embedded into each transfer so multiple transfers mean a significant erosion of financial security.
I will be bringing you more of this story over the coming months,