by Structured Settlement Watchdog®
Structured settlement lawyer Robert Ostrov is running for political office again and the South Florida press is all over his case
"On paper at least, it seems Palm Beach County judge candidate Robert L. Ostrov has rarely seen an industry with a not very judge-like reputation that he hasn’t capitalized on". Jose Lambiet Gossip Extra May 2, 2016
Ostrov worked for Settlement Funding LLC (a/k/a Peachtree) in the heady days of Peachtree's low hanging fruit grabbing
Robert Ostrov "I have refused to do business with (a cash now) company that charges) 30 percent. On my watch, the highest discount fees were in the 20 percent range. That’s what your credit card company probably charges.”
Ostrov has been peddling that predatory analogy since 2008, when I was forced to listen to it as part of a certification course I was taking that included an education segment on factoring
20% is not a competitive discount on structured settlement factoring transactions. It wasn't in 2008 either. Fortunately discount rates have been forced down, way down.
A competitor of Ostrov's had this to say in July 2008, a year Ostrov also ran for public office (and lost)
'The comparison of discount rates to credit card rates is a bit absurd and seems to be a way for Mr. Ostrov to justify why his or other structured settlement factoring companies charge such high rates. Any company in the industry has the ability to provide rates under 10% (emphasis added). Here is another list of reasons this comparison is absurd:
- Credit card interest rates are determined by an individual’s personal credit score (and other factors)
- Discount rates in factoring transactions are determined by a companies (sic) financial rating (most life companies retaining a A to AAA rating" Reproduced from this July 8, 2008 post
I also question whether what Ostrov told Jose Lambiet is true. During Ostrov's tenure at Peachtree, the Patricia Chambers structured settlement factoring fiasco went down. Chambers was charged more than double what Lambiet reported that Ostrov said, by Peachtree.
Read Florida Transfer Disclosure in the Patricia Chambers case Note Section H to wit..." you will in effect, be paying interest to us at a rate of 41.73%"
Even if Ostrov tries to defend himself by saying that the payments were small, if Ostrov really said what Jose Lambiet published, then Robert Ostrov is a liar.
According to Jose Lambiet, if Ostrov becomes a civil court judge, he will be called on to approve structured settlements (i.e. transfer orders for cash now transactions) and the fees charged by those companies.
One member of the National Association of Settlement Purchasers, a former employer of Ostrov's, has already contributed to Ostrov's campaign.