by Structured Settlement Watchdog
Structured settlement factoring companies offer a valuable service for people in need who cannot get resources they need from other sources. Unfortunately, because sales practices of structured settlement factoring companies are completely unregulated in all but a few states, the potential for exploitation of structured settlement annuitants is a thing.
Consider this questionable approach on the website of a company called Rapid Capital LLC which uses the catchy URL rapcashnow(dot) com
"Your Rapid Card puts you in full control of your money, instantly!
From the moment you receive your personalized card, you can start receiving advances, gifts and funding straight to your hands. The card can be used as a point-of-sale credit or debit card at any store or online retailer that accepts Master Card. In addition, the card may be used at any ATM to check your balance or withdraw cash (see below for free ATM locations). As soon as your transaction is approved in court, we will distribute your funds directly to your rapid card and the funds will be available for use immediately after"
Questions about the Rapid Capital Approach on their website rapcashnow (dot) com
- You do not have full control of your money instantly because there are structured settlement protection laws in all 50 states in the United States. Any transfer must be approved by a judge as being in the payee's best interest and that of his/her/their dependents. That process could take 60-90 days, if approved.
- The best that Rapid Capital, or any company like them can do is pay pennies on the dollar. No gift is going is make up for the money for going to lose by selling payments to them, or any other similar company. Don't be distracted by a shiny penny or quarter.
- Do the stored value cards give the structured settlement factoring company the ability to make money on the float of your money? What are those charges?
- Is there any FDIC protection on money stored in the cards? Read this GENERAL COUNSEL'S OPINION NO. 8—Insurability of Funds Underlying Stored Value Cards and Other Nontraditional Access Mechanisms, from the Federal Deposit Insurance Corporation (FDIC).
The Structured Settlement Watchdog Raps Cash Now
Rap Cash Now
Cain't Be So
Unless Judge say so
If Judge say no
Ain't got no dough
Ain't really in control
Or even effin' whole
It's a trick, Rick
Quick and slick
Nothin' but rim
The pickins slim
Pennies on the dollar is the best you gonna get
I told ya so and that is effin that.
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