Within the structured settlement factoring industry, every company is not alike. If you are in need of liquidity and have exhausted all other options, getting a lump sum of money in exchange for your future structured settlement payment rights may be the option for you.
On May 26th, 2010 Judge Norma Ruiz denied a request for court approval to transfer future structured settlement payment rights to Settlement Funding of New York, LLC (Peachtree Financial). The opinion, is a direct response to the "cash now" advertising of this company. It's good to see a judge take the time to enforce the Structured Settlement Protection Act.
The Wall Street Journal on Friday, July 23, 2010 published an article titled "Another Can't-Miss Deal That Can Miss Spectacularly".
This article is inaccurate and misleading on a number of accounts.
Firstly, our Group has transacted over $350 million in these types of payments with zero defaults.
Secondly, the liquidity risk that is mentioned in the article is a risk common to many investment insurance annuities and is not unique to annuities purchased on the secondary market. It is a risk that is fully disclosed in our Group’s Buyers Guide that is given to all prospective buyers. Buyers accept this risk because the guaranteed nature of the investment with significantly superior fixed rates of return are worth it. The investments are designed as long-term holds and should not be purchased for short term strategies. For example, they qualify for IRA plans.
