As a featured commentator on The Legal Broadcast Network, Settlement Capital will be providing weekly commentary in both written and audio format for trial lawyers, settlement professionals and others interested in knowing more about the factoring transaction process.
The Settlement Channel
The Settlement Channel, the home for Settlement Professionals on the web. Settlement Capital is a featured commentator for The Settlement Channel on the topic of factoring.
This is the final segment in the series on common misconceptions and complaints about structured settlement factoring. Previously posted videos were:
Part 1: Advertising
Part 2: Servicing
Part 3: Discount Rates
Part 4: Preying on the Weak
This final video is entitled "The Bottom Line" and gives an overview of factoring. Is it for everyone? Is it a "ripoff"? Why all the hatred for factoring? Watch Matt Bracy of Settlement Capital Corporation discuss these topics and more.
As always we welcome questions or comments about this video or anything related to structured settlement factoring. You may comment here, or contact Matt Bracy at mbracy@setcap.com.
In part 4 of this series on common complaints about structured settlement factoring, Matt Bracy and Scott Drake discuss the frequent charge that factoring companies "take advantage of" consumers. Matt and Scott discuss:
Do factoring companies charge sharp discounts to payees who are ill equipped to appreciate the value of their future payments
Do factoring companies give sellers pennies on the dollar to buy payments
Are factoring companies taking advantage of people?
Do structured settlement payees require some sort of special protection?
Why all the negativity when talking about factoring?
As always, we welcome your comments or questions about this issue or anything concerning structured settlement factoring. You may comment here, or contact Matt Bracy directly at mbracy@setcap.com.
In this continuing series on common complaints, problems and misconceptions with structured settlement factoring, Part 3 addresses "discount rates". In short, discount rates are numbers expressed as a percentage used to calculate net present value of future cash flows (Investopedia).
These are likened to percentage rates used to calculate loans (although factoring transactions are usually assignments or sales, not loans).
Matt Bracy, General Counsel of Settlement Capital Corporation, discussed discount rates, the "real" value of payments, and how discount rates are calculated with Scott Drake of the Legal Broadcast Network in this two segment video interview.
Segment One:
Segment Two:
We welcome your comments, questions or suggestions for future articles or videos. You may comment here, or contact Matt Bracy via email at mbracy@setcap.com.
In this first part of the Legal Broadcast Network's newest series, The Problem with Factoring, Scott Drake interviews Matt Bracy, General Counsel of Settlement Capital Corporation, about factoring advertising. Why does factoring advertising upset so many people? Are these ads over the top, or do they perform a needed educational service? Click the video below to find out.
The Problem with Factoring series will be broadcast every 2 weeks, and we encourage your comments and questions. Submit comments either here or via email to mbracy@setcap.com, and Matt will respond on the next episode.
Coming up next on The Problem with Factoring: Servicing. What is it, why does it happen, and is it a problem?
The opinions expressed herein are solely the opinions of the speaker or author, and do not necessarily reflect the opinions of either Settlement Capital Corporation or the Legal Broadcast Network. Contact Matt Bracy at mbracy@setcap.com, or by phone at 800-959-0006.
Scott Rothstein, a Florida lawyer, has been implicated in a federal investigation concerning allegedly fraudulent investments. Due to some early erroneous reporting of this story, some thought this investigation concerned investments in structured settlement payments. Scott Drake of the Legal Broadcast Network interviewed Matt Bracy, General Counsel of Settlement Capital Corporation on this matter.
We welcome comments or questions about this story or any other issue concerning structured settlement factoring. You may comment here, or send an email to mbracy@setcap.com.
On October 11, 2009, Governor Schwarzenegger signed into law major changes to the California structured settlement transfer, or "factoring", statute. Senate Bill 510, co-sponsored by the Chair of the Senate Judiciary (Senator Corbett, a Democrat) and Assemblyman Tran (a Republican), becomes law on January 1, 2010.
Federal law (IRC 5891) mandates that all transfers of structured settlement payment rights be approved by a state court, or face a stiff punitive excise tax. California and 46 other states have laws that regulate structured settlement factoring. California first passed a structured settlement transfer law in 1999.
In addition to many minor "clean up" provisions, these revisions to California's transfer law also add for the first time certain factors that the court must consider when determining whether a transfer should be approved. These 15 factors include the "reasonable preference and desire" of the seller, any existing child support obligations, whether the future payments were intended for medical care, and whether there have been previous sales or attempted sales.
Another nuance of the revised California transfer law is the requirement under certain circumstances to notify the seller's former personal injury lawyer that they are trying to sell payments. This requirement only applies to fairly recent settlements in California. The former attorney is invited to contact the seller if desired, but is not required to do so. Of course, the seller can elect not to speak with his or her former counsel as well.
Politically this bill was a compromise between various interest groups, including the Consumer Attorneys of California (CAOC, formerly known as the California Trial Lawyers) and the National Association of Structured Settlement Purchasers (NASP). As one of the participants in this process on behalf of my company and NASP, I am grateful to the CAOC for their work on this bill and for the collegial atmosphere that prevailed.
For more information, watch the below video interview I did with Scott Drake of the Legal Broadcast Network. The text of SB 510 is here.
By Matt Bracy, General Counsel, Settlement Capital Corporation. We welcome your comments and questions on this article or any topic related to structured settlements. You may post comments here, or email them to me directly at mbracy@setcap.com.
Monday, June 28, 2010 at 03:10PM 