Structured Settlements and Settlement Factoring is Not A Riddle

I am writing this as a follow-up to a recent article by John Darer "Structured Settlement Quote Fiasco" in regards to search terms factoring companies are using on the internet. I agree with him that this issue needs to be addressed and I believe a resolution will come as a result of increased education and awareness.

There is a serious lack of education to the annuitants when it comes to the structured settlement factoring industry in general. The typical steps for an annuitant when they need money is to call a bank / credit union. Next, the annuitant will call the insurance company issuing their checks. When they still can't get answers, annuitants then call the attorney or broker who originally set them up into the structured settlement (assuming they still have their contact information.) This is where attorneys and brokers can play a significant role in their client’s decision to sell or not sell their payments. By getting involved, you can add significant value to your client’s current financial situation. While not every situation calls for an annuitant to sell their payments, not every situation should be discouraged either.

If an annuitant is dead set on selling, they will find a factoring company. Eventually, they will most likely see a TV commercial with a slick figurehead asking them if they have a structured settlement, if they would like cash now, and if so call for a free quote... They will call and will most likely attempt to sell their payments without the attorney or brokers assistance. Some will see the advertisement and search the internet for other factoring companies. They will not know what search terms to type in so they will Google terms they know or have heard "structured settlement, sell structured settlement, structured settlement quote." Sound familiar?

The point is we can all do a better job educating annuitants about their rights and options in a clear and non-confusing manner.  John Darer is 100% correct that an injury victim should not first hear of the right to sell their payments before or while they are seeking a structured settlement in the first place. This is not a riddle of what comes first, the Chicken or the egg? In this case it is the structured settlement.

We intend to address this issue in greater detail in the next blog that will come later entitled "Don’t Be Afraid To Use The "F" Word!"