Structured settlement purchasing companies offer services to people selling their structured settlement payments. They provide lump sums of money to settlement owners in exchange for the rights to future payments or portions of the future payments. When people contact purchasing companies intending to sell their payments, they gather information and calculate for the specified payments.
The offer by structured settlement companies usually is less than what these payments would amount to overtime. This offers the companies a markup covering legal and administrative costs and serves as their profits. The structured settlement company then sends the seller a contract that spells out the offer and the costs.
The buyer then sends the contract, files the required paperwork, and arranges for a court hearing. Federal law dictates that a judge must rule that the proposed transaction is in the best interests of the settlement holder. Once the judge signs off on the sale, the seller receives a lump sum payment from the structured settlement company. This article will guide you to determine the best structures company for your needs.
How to Pick a Company
Investigate the Companies
It would be best if you exhaustively looked into a company you’re considering selling your structured settlement payments to. Check their rating with the Better Business Bureau. It’s also essential to confirm whether your company of interest is a member of the National Association of Settlement Purchasers. Look at their websites and note their customer service contacts as you move along in the process.
It also helps to do an online search to read reviews about payment companies to make your selection work easier.
Customer Service
The structured settlement process is complex. Therefore it’s essential to find a structured settlement company with effective customer service–a company that will provide you with information in an easy format for you to understand as possible. You can determine the level of customer service by gauging whether the company has flexible working hours that will allow you to discuss confidential financial matters in a private time.
The company should also have different communication channels such as email and other chat methods because it’s essential to have a record of your conversations for future reference. It’s also convenient to work with one representative who understands your unique requirements from start to finish.
The Structured Settlement Company’s Denial Rate
When the buyer and seller of a structured settlement payment appear before a judge, the judge may deny completion of the contract if the circumstances do not result in a deal in your best interest. If the company’s denial rate is high or hasn’t been published, or does not provide you with this information, walk away. Total dollars purchased.
Total dollars purchased is the entire value that the structured settlement company has acquired. A higher number indicates the number of buyouts that judges have approved. Higher values, therefore, increase the reputation of the company you intend to transact with.
Compare the Structured Payments Company’s Discount Rates
The offers that you receive from the buyout companies will vary, and many factors determine how much a structured payment company will pay you. Therefore, it’s crucial to compare a reputable company that offers the best payment. Typical discount rates go for between 7%-29%, which is always negotiable. The company buying your structured payment will furnish you with the effective rate, including the discount rate, fees and other costs associated with the agreement.
Structured Payment Companies Fees
Another vital aspect to consider is whether the structured payments company’s fees are acceptable. Because of competition, the company buying out your structured payment may
set aside the fee, but this varies from company to company depending on their policies. The fees a company may charge you include court, brokerage, and administrative costs.
It’s essential to perform exhaustive research on the pros and cons of these payment companies to make an informed choice. This is because whether the court accepts or rejects the application, you will have incurred costs on the fee charged and time spent on the process. Examples of structured payment companies within the United States include; J.G Wentworth, Fairfield Funding, Stonestreet Capital and Peachtree Financial Solutions.