by Structured Settlement Watchdog
Sources indicate that SuttonPark, the premier servicer of structured settlement receivables in the USA, had significant layoffs in its servicing unit in May 2024.
This coincided with damaging revelations about its parent company, 777 Partners in the news and lawsuits. This hives with when I began receiving calls concerning slow payments began to trickle within weeks. The SuttonPark backlog is complicated, worsened by a staffing shortage, and is stressing out investors in structured settlement receivables and regular structured settlement payees who made partial sales of structured settlement payments alike
Was loss of a Banking Relationship the Root of the Servicing Issue?
I've recently learned that the loss of a major banking relationship, Wells Fargo, was at the root of the problem in the servicing unit.
Apparently a new banking relationship was recently established, with Axos Bank, out of San Diego, CA.
Who is Axos Bank?
Axos Bank, formerly Bank of the Internet (BOFI) became Axos Bank on October 1, 2018 and began trading on the New York Stock Exchange under the ticker symbol “AX”. Bank of Internet USA and BofI Federal Bank, along with most of its other brands including BofI Advisor, Bank X, NetBank, Apartment Bank, Annuitants Federal Bank, and Virtus Bank, were absorbed into Axos Bank. Source: Axos Bank website. Gregory Garrabrants heads Axos Bank.
Latest Annual Reports | Axos Financial, Inc.
Shuffling of Phone Recordings
In another minor development there has been a shuffling of recorded messages that tell people nothing really new or credible with respect to a 72 hour timeline. One of the folks I've spoken to in the last week finally received their November payment today. In a positive development, another live body was reported by "Penny Farthing" a reader contact, on December 4, 2024 to the Structured Settlement Watchdog. Penny told me that she received an email from Julia Holmes, a Financial and Servicing Specialist at SuttonPark Capital. Julia Holmes Email & Phone Number | Financing and Servicing Specialist at SuttonPark Capital | ZoomInfo.
The latest update seems to be from November 26, 2024. The recorded message at 800-670-6777 now indicates that if you are expecting paper checks, there is no confirmed date for when the payments will be issued.
What Issues Can Arise With Paper Checks to a Servicer of Structured Settlement Payments?
Paper checks for structured settlement payments can present multiple issues. They may be dispatched to an incorrect address, become lost, or experience delays in the mail. Additionally, they lack tracking and delivery notifications, and risk becoming non-depositable due to stale dating. Should an error occur, the check must be stopped, and a replacement check issued.
An example of an issue that has come up in servicing is where SuttonPark assumed the servicing from another servicer.(Example Security Title/Loancare from 2022). The likelihood of errors increases when an annuity issuer, no longer actively writing structured settlements, may have divested that segment or is utilizing a third-party service for their structured settlement operations.
Individuals are being urged by the message at 800-670-6777 to mail a "VOID" check or a bank deposit slip to [email protected]. However, consider the risks of emailing your banking details unless the security with SuttonPark can be verified.
Even if the SuttonPark situation is resolved as one would hope, its prolonged duration has already intensified concerns about the current situation. Given the events at SuttonPark and their ongoing effects, it's clear that there should be new, transparent requirements for disclosures about payment servicing and its related risks, regardless of their likelihood, to both investors and direct beneficiaries.
It's challenging to envision improvements without expanding the team
The backlog at SuttonPark is complex and has been worsened by a shortage of staff, causing stress for both investors in structured settlement receivables and regular payees of structured settlements who have made partial sales.
In a positive development, another live body was reported by a caller on December 4, 2024 to the Structured Settlement Watchdog. Julia Holmes, a Financial and Servicing Specialist at SuttonPark Capital. Julia Holmes Email & Phone Number | Financing and Servicing Specialist at SuttonPark Capital | ZoomInfo.
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