by Structured Settlement Watchdog
Certain companies in the structured settlement secondary market are losing their minds when life insurance companies like Berkshire Hathaway make a serious effort to protect their structured settlement annuitants from the vultures. The gravamen of the situation is that many of these factoring companies spend lots of money on advertising. They pay advances, court filing fees and legal fees and then get gazumped. If they are not gazumped by the annuity issuer, they are poached by their competitors. It is a cut throat industry of their own doing and there is blood in the streets. Should anyone feel sorry for them?
For every honest player in the structured settlement secondary market there seems to be a river of slime flowing into an estuary of sleaze. There is plenty of documentation of corruption, dishonest advertising and dishonest business conduct and that documentation continues to proliferate and catch the eye of the mainstream press and the likes of the Consumer Financial Protection Bureau and states' attorneys general. Dishonest originators hurt both the annuitants and investors in ill-gotten structured settlement payment rights.
Whingeing that an annuity issuer has a conflict of interest, when it engages its annuitants and payees to educate and attempt to protect them at rates that may be better than most structured settlement factoring companies, is a bell that rings hollow. Call off the pity party, there are still plenty of people to pillage, for now.
Selling consumers should always compare rates inclusive of all costs, what is known as the effective discount rate.