Structured settlement factoring is the same thing as buying out your annuities for a lump sum now instead of getting your period payments over the years.
Factoring companies are not the same as a structured settlement company.
The latter is the company where you are setting up your annuity insurance at the beginning. Life insurance companies that offer annuities often have agents specializing in structured settlement plans. A broker contacts the structured settlement agent or the company contacts him/her and refers him to the individual in need of setting up a structured settlement product.
A structured settlement factoring company is a whole different specialization. It is the secondary market buying out later on the structured settlement payments from annuitants who have changed their mind and decided upon getting a lump sum instead of waiting for the periodic annuity payments. This is called factoring. It is the same as buying out the annuities.
The settlement factoring market has started decades ago when structured settlement annuity insurances began to gain popularity because of its many advantages.
Factoring companies started to reach out to the payees of annuities offering them to pay a lump sum and taking over the annuities from them. Payees agreed because they were despaired or excited at the time to get a large amount of money instead of having to wait for smaller payments.
There was a big catch, however, as the payees got a dramatically smaller amount as they would have gotten from the annuities over time.
In some instances, the amount they got was ridiculously low, but they to agree because of their strong dependency on the cash, or they were tricked into it by the shrewd factoring agents often employing unfair tactics to capitalize on the savings or compensations of the annuity holders.
Today, factoring of structured settlement is very popular, but the process is much regulated and controlled thanks to the Structured Settlement Protection Act by the Federal and State governments in the US enforcing strict laws in order to protect the interests of the annuity sellers.
A judge has to approve of the sale and transfer of a structured settlement. There's a 40 percent penalty on the profits of a purchased structured settlement by a factoring company that was not approved in court.
As a long year structured settlement factoring company, completely fair and in compliance with the rules, you'll have a great experience when dealing with me, and you'll surely get a fair deal.
So, don't wait. Call now, and we'll get things done to your full satisfaction.