In reference to Matt Bracy’s post on April 22, 2008 “Factoring 101: The Truth
About Servicingâ€, the facts are as follows:
1. No annuity issuer in the structured settlement writing business has ever
refused to permit an annuitant to sell only a portion of periodic payments (ie
100 of 250 payments) or sell just lump sums or periodic payments in a mixed
payment scenario.
2. To our knowledge, only one annuity issuer out of approximately 39 issuers who
write structured settlements refuses to “split†individual payments (ie refuses
to cut two checks if the annuitant wishes to sell only $400.00 of a series of
$1,000 monthly payments.) The other 38 annuity issuers permit such splitting.
3. In the limited circumstance where the annuity issuer refuses to split, our
company arranges for an arms length, independent and bonded servicer to service
the payments. We do not service the payments ourselves as we believe such is a
conflict of interest.
The bottom line is that companies that engage in routine servicing do so with
the objective to eliminate competition and low ball offers to annuitants who
later want to sell the remaining payments. The practice is extensive and
long-standing and the fact that a company like Settlement Capital (whom we have
proof has serviced payments in a #1 scenario above) is trying to defend its
practice suggests that
Cravenho and
Darer have hit a raw nerve.
Written by David Springer the president of Sovereign Funding Group.
Sovereign Funding Group is an experienced, reputable company that offers
convenient, no-pressure services to help individuals with the selling of their deferred
structured settlement
payments.
