Factoring Company Abuses
Written on January 1st, 1999 by david
Settlement Professionals Inc. Fast Facts 1, 1999
You have probably seen the ads on television or in print. Factoring companies with names like J.G.Wentworth, Stone Street Capital, Peachtree, etc. offering to provide post-settlement “cash-strapped” claimants a buy-out for their remaining structured settlement payments.
On the face of it, this would actually seem to be a good thing, except that investigative media have uncovered tons of abuse. From excessive discount rates of 20 percent, 40 percent, 60 percent or more, to tales of folks subtly pressured to cash out their entire remaining annuity, when they initially sought just a smaller, partial buy-out to cover a one-time emergency.
Filed under: Blog, structured settlements
