Some reckless structured settlement brokers are selling the names and private information about structured settlement annuitants to structured settlement factoring companies for big money. And the settlement purchasers are only too willing to pay. One settlement purchaser I spoke with said it was even targeting a well known major agency. According to our sources the going rate is $2,000-$3,000 per name, although in some cases the purchase rate may have been higher. For the veteran structured settlement broker and or agencies involved the profits can be in hundreds of thousands or even millions. According to sources in the structured settlement factoring industry, some are pitching their names to the highest bidder. As best I can tell right now the conduct is confined to only a few. But who are these people?
Are they veteran structured settlement brokers without a succession plan who are seeking to monetize their business before riding off into the sunset on their pension? Are they the owner or management of a structured settlement general agency looking to prop up its balance sheet for financing?
The primary market brokers who engage in this activity are purportedly insisting on confidentiality agreements to protect themselves against being exposed for this unethical conduct. Confidentiality agreements only go so far and may be subject to discovery in lawsuits. When this happens, this will blow the scandalous behavior of these few structured settlement brokers and the agencies they are affiliated with wide open and will provide a serious ethical challenge to (1) the National Structured Settlements Trade Association and its board of directors (2) the life insurance companies that have appointed these brokers and agencies (3) the insurance companies who utilize the services of the subject brokers and agency(agencies).
I ask the broker(s) and agency(agencies) engaging in this activity to consider the privacy of the annuitants
Why would a structured settlement broker or agency essentially treat the souls that they have placed into structured settlements over the years like one of "cat lady" Tricia Nixx's structured settlement leads ("ready for your sales teams to pounce on them"), while outwardly soliciting business from trial lawyers and insurance companies?
I ask the broker(s) and agencies to assess the reputation risk for their unethical business conduct. If you're ashamed of a divulging the confidential information of people that trusted you enough, that you need a confidentiality agreement then perhaps you should stop. The practice has become so irresponsible that it's possible that these people will eventually screw themselves and find themselves named in an investigative report by a major news publication. Sooner or later the chips are going to fall. It's only the matter of when.