by Structured Settlement Watchdog
A structured settlement annuitant, with a valid reason for selling her structured settlement payments, contacted the structured settlement watchdog to see
if she was getting a fair deal from a NASP member company known to low ball annuitants. Her reason for selling was the need for shelter and a car. She was offered $150,000 for the payments she was selling. Our expert estimated that there was a minimum of $60-$100K of excess fat in the deal and that 5.2% was a minimally acceptable discount rate. The consumer's education which encourages the virtue of patience, resulted in a deal being done for $250,000, a 4.9% discount rate for the payments being sold. That was a 66.66% better deal!
Selling valuable structured settlement payment rights generally does not make sense. In the cases that it does however, shopping around is essential. With bond rates dropping, investors maybe willing to pay more to secure the payments for themselves. Care must be taken to seek competition bids from unrelated companies.
We did not take any compensation on the deal.