The State of the Structured Settlement Industry
With so many changes that happen day in and day out it is hard to determine the future direction of the secondary market. The primary market concentrates on situations in which there is a pending lawsuit and the financial planner (in some cases) helps to advise that the payout or settlement should be structured as a greater benefit to the client.
In almost all cases the owner of the payment streams should hold onto these payouts but in some cases a structured settlement annuitant may be tempted to sell their payment rights in exchange for a lump sum. These companies that facilitate the transactions are in the secondary market. Known companies are jg wentworth einstein structured settlements, peachtree settlement, novation, law leaf, and drb capital.
There is a lot of competition in the industry and that comes as a result of value deals that consumers see as an opportunity to cash in their payment streams while the other side sees dollars signs in the spread for essentially brokering the deal.
As legislation gets tighter and new laws are created to have better oversight in the industry it will be very interesting to see where the industry heads. The current state is exactly as you think it is when you watch the commercials and read the reviews online.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.