by Structured Settlement Watchdog
Elyse Plude settled her personal injury case in 2014 and within 2 years had stripped away a good chunk of her stable tax free structured settlement payments in three factoring transactions, for about 50 cents on the dollar in aggregate
Two of those deals were with Novation Funding and another was with Patriot Funding with discount rates ranging from 7.85% to 8.11%. One other deal, attempted only two weeks after Ms. Plude signed the underlying Settlement Agreement, an attempt to transfer $295,000 in exchange for $70,000 in cash, was dismissed or withdrawn.
Then in January 2018, an attempt was made, through Novation Funding (using the DBA Restoration and Renovation) to sell the remaining payments, totaling $1,190,600 for $12,015.00 in cash, purportedly for a "house flipping business". In each case independent professional advice was waived.
Berkshire Hathaway Structured Settlements Intervenes
Berkshire Hathaway intervened in the January 2018 transfer petition and the transfer was denied March 19, 2018. Read Download Berkshire Hathaway Intervenes in Structured Settlement Transfer re best interest
Subsequently Novation Funding switched counsel to CT "structured settlement cash now stud" attorney Douglas M. Evans and Novation refiled under the DBA NGU on March 29, 2018. The case is still pending and Berkshire Hathaway has filed an appearance in the new case on April 11, 2018. The transfer hearing is on April 30, 2018 at 930am. Superior Court for the Judicial District of Tolland at Rockville at 69 Brooklyn Street, Rockville 06066.
Novation Funding LLC DBA Restoration and Renovation v Elyse Plude Revocable Living Trust TTD-cv-18-6013825-S Rockville JD
Novation Funding LLC DBA NGU v Elyse Prude Revocable Living Trust TTD-cv-6014380-S Rockville JD
It is notable that Novation used a different DBA for each of its deals with Plude in Connecticut.
Factoring Companies Soliciting Connecticut Residents NOT Registered to Do Business in The State
Neither Novation Funding nor Patriot Settlement Resources are registered to do business in Connecticut with the Connecticut Secretary of State. In Novation's case its business in CT is not incidental. According to Court records there are more than 25 structured settlement transfer cases on which Novation Funding is listed as a party.
Structured settlement factoring companies squawk louder than chickens in a rustled hen house
Cash now pushers gazumped by competitors often gazump or poach others. It's a vicious cycle that benefits the consumer by driving down discount rates which benefits annuitants who have to transfer.
One wonders how many other structured settlement annuity issuers, owners, or qualified assignees intervene in structured settlement transfers?
- The United States Department of Justice does contest transfers and has won cases over and over again. One of the best defenses against abusive structured settlement factoring is to structure a US government case.
- New York Life Insurance Company recently filed an interpleader motion in the Terrence Taylor case in Portsmouth Virginia. Due to a broken system in Portsmouth Circuit Court, that is separately the subject of a Class Action Law Suit filed last year, 11 structured settlement transfer petitions were filed and approved in less than two years. Imagine if there was a Berkshire Hathaway style intervention!
If other life insurers are interested in documenting examples of their efforts to protect their annuitants from abusive factoring I'd be happy to hear from them.
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