USA Owned Structured Settlements from FTCA Claims | Another Factoring Challenge Bites The Dust

by Structured Settlement Watchdog

It is the well-established policy of the United States to oppose any attempt by the designated annuitant, payee or beneficiary to assign, transfer, sell, mortgage or encumber, or factor annuity payments  from an annuity contact owned by the United States, which was purchased as part of a structured settlement of an FTCA claim.  For the uninitiated, FTCA is an acronym  for the Federal Tort Claims Act.

For over a decade attempts to come up against Uncle Sam have failed

The well established  policy of the United States to fight attempts to factor such contracts and its position has been repeatedly affirmed in federal courts

• Settlement Funding, LLC v Rose Garcia 533 F. Supp 2d 685, 694 (D. Tex 2006), affirmed by Settlement Funding, LLC v Transamerica Occidental Life Ins. Co., 555 F #rd 422 (5th Cir.2009)
• Transamerica Assur Corp. v United States, 423 F. Supp 2d 691, (D. Ky. 2006), affirmed by Transamerica Assur. Corp v Settlement Capital Corp, 489 F 3rd 256, 264 (6th Cir. 2007)

Houston based RSL Funding, LLC  filed a transfer petition in Bexar County Texas on Behalf of Jose L. Cruz, Case Number 2016-CI20542 seeking an order approving the transfer of 60 monthy payments.  The United States claimed that the first notice it received was a December 28, 2016 email from Allen Campbell the Customer Services Manager at Genworth and responded on December 29, 2016 suggesting that Genworth take appropriate action to avoid breaching its contract with the United States, such as opposing the petiton in state court, coupled with the filing of a statutory interpleader action in a federal court with jurisdiction.  Within a week RSL counsel L. Andy Paredes of San Antonio,  filed a notice of non suit without prejudice.