by Structured Settlement Watchdog
Accurate data about structured settlement factoring would be uselful for legislators to understand how big the problem is. Is it small or is it something that sticks out? What we have is a 20 percentage point swing. So what is the truth?
Has the amount of factoring expanded or contracted? One thing we do know that there has been an expansion of consumer and investor litigation in this area since 2013.
The Natiional Association of Settlement Purchasers (NASP) asks "Do most people receiving structured settlement payments sell their future payments? NASP answers "No, most people receive payments according to the original schedule. In the estimation if the National Association of Settlement Purchasers, "less than 20% of structured settlement recipients ever complete a Secondary Market transaction". -NASP Secondary Market FAQ retrived from NASP website October 2, 2022.
But Strategic Capital, which is a member of NASP, published a winky dink contradiction in its website's FAQ, implying that NASP is 20X too high. Strategic Capital, based out of Toronto says:
1. Very few people actually sell structured settlement payments
"Out of the total outstanding amount of money currently held in structured settlement annuities -more than $80 billion- less than $800 million is transferred on the secondary market each year. That means that only about 1% of structured settlement payments are sold each year."
2. Only about 1% of structured settlements are sold or traded in the marketplace.
Not a lot of people sell their structured settlement annuity payments. In fact, 99% of people do not sell structured settlement payments
"Only about 1% of structured settlements are sold or traded in the marketplace. That is still published October 2, 2022.
3. Patrick Hindert, author if the structured settlement industry's seminal text, stated in 2013 that there were $365M present value secondary market purchases. This number represented only 7.1% of new money flowing into structured settlement annuities in 2013. So we're looking at a "20 or 7 to 1". People of a certain vintage might appreciate that it could be the " B" side to a "new release" by Chicago as a buzz cut from "25 or 6 to 4"
Stratcap's number seems a bit optimistic, er unrealistic. Prove me wrong, please. What would be nice to know is ...
The percentage of people who've sold once, twice thrice, four times and sold it all. The time frame from first sale to obliteration and so on. Let's hear the real numbers, warts and all. The National Association of Settlement Purchasers holds its annual meeting in New Orleans, in early November 2022. That leaves a month to get real on the stats of structured settlement factoring. How about it?