When it comes to structured settlement factoring, terms and terminology get constantly mixed up, misquoted and misrepresented. Folks can’t seem to get it straight that “structured settlement brokers” are not in the factoring business and factoring companies are not in the structured settlement brokerage business. Misinformation is rampant. Depending on who you read and your perspective, factoring is evil, a necessary evil, a viable alternative, or the only way. Where is the truth in all this?

It seems the world’s understanding of structured settlement factoring, and the intersecting world of structured settlements, is in disarray. Why are the basic facts constantly misstated, overstated, understated or not stated at all? How can you explain the enormous quantity of misinformation on the internet?

The large volume of “information” on the internet concerning structured settlement factoring is undoubtedly a function of the high cost of terms like “sell structured settlement” for sponsor ads on Google and such. With lots of money to be made on the internet by simply getting people to click on ads, nature takes over and you then have many, many internet sites featuring information on how to “sell your structured settlement”. Naturally there is no real regulation or screening, and much of what is written about factoring is garbage. The volume of misinformation is astounding, with new entries nearly daily.

I have discussed such misinformation in the past.  Another recent example is the “Ezine” article by Lance Winslow. Although Mr. Winslow has a very diverse background, and is a self-proclaimed Very Interesting Guy who traces his ancestry to the Mayflower, he knows little or nothing about structured settlements and factoring. For instance, Mr. Winslow’s short breezy article on structured settlement factoring states that you can use the money you generate from the factoring sale for "investing, buying a house or buying new car, plasma TV and other things humans want to make them happy.” I wonder if Mr. Winslow would like to come to court with me and explain how selling guaranteed, income tax-free payments and buying a plasma TV is in the “best interest” of the seller.

If you are involved in the structured settlement business, please take some time to educate yourself on what factoring really is, how it works and how courts influence the process and the underwriting.