by Structured Settlement Watchdog
Both houses of the Minnesota legislature have approved important changes to the Minnesota Structured Settlement Protection Act as it hits the governor's desk. That the measure was approved unanimously in the Minnesota Senate and by an overwhelming 121-4 vote in the Minnesota House of Representatives shows just how impactful last Fall's scathing 4-part multipart report in the Minneapolis Star Tribune was in opening lawmakers' eyes to the fulminating abuse of Minnesota citizens. The updated Minnesota SSPA has been signed by Minnesota Governor Tim Walz and will go into effect Aug. 1.
I covered the proposed changes in my March 15, 2022 post Minnesota Structured Settlement Protection Laws to Grow Teeth if HF 3768 Passed
The proposed discount interest rate cap did not make the final bill as part of a compromise. While this may seem counterintuitive, an interest rate cap does not necessarily serve the interest of citizens of any state if the capital to provide liquidity (when necessary and approved) is not available and encourages predatory forum shopping to neighboring states, inveigling citizens in a fraud that will be held against them if they squeal " FOUL" later. Nasty stuff. Plenty of examples.
Minnesota SSPA | The Only State to Require an Outside Attorney to Advise Structured Settlement Transfer Judges
Monthly structured settlement payments may be the primary source of income for accident victims who are unable to work because of catastrophic, lifelong injuries. For aggressive structured settlement factoring companies, the "whales" are young adults with long term structured settlements for repeat sales for pennies on the dollar.
No other state routinely requires the appointment of an independent advisor to protect the interests of a seller claims the Star Tribune. Minnesota judges also will be able to appoint an independent advisor on any case if they want an outside opinion on the sale. Those advisors will be paid by the factoring companies, with costs capped at $2,000 per case.