Litigation

2008 NSSTA Board Candidates on Factoring

By John Darer

As expected this year's NSSTA Board candidates raise the factoring issue.

Larry Niemi suggests that he would strive to address the plaintiff and defense bars on every occasion possible, but states nothing specific in his campaign letter.

Robin Young-Ellis suggests that brokers have a post settlement duty to provide the best guidance to the annnuitant, including helping to determine if the sale (of structured settlement payment rights) meets the court's best interest test and how to best direct the annuitant so they are not gouged by loan shark interest rates. Although not stated in her campaign statement I am aware that Robin has at least made a concerted effort to understand the rationale behind the structured settlement industry's dirty secret about the kickbacks received by certain structured settlement planners and brokers from factoring companies.

Neither Dan Durbin nor Jim Logan raise the subject at all.

None of the candidates suggests real solutions to the real factoring problem. Educating plaintiff attorneys is one thing, but understand that there is already a viable non structure alternative to them where factoring isn't even a concern. Much of our industry is 3 years behind the learning curve. Like it or not, this must change.

There is plenty of material on the the issues in this blog, in the Settlement Capital blog, in the Settlement Quotes blog, or on The Settlement Channel.

1. Who has the guts to spearhead a legislative initiative to require that factoring companies and their representatives and brokers be licensed to do business in each of the states, just as we are? Remember that JG Wentworth recently promoted its licensure in 22 states for life settlements.
2. Who has the guts to "push the envelope" to stop the rampant false advertising that is "cash now" now that the President of the National Association of Settlement Purchasers has spoken responsibly and presented us with a gift?
3. Who has the guts to team up with willing NASP and SSP members where we have common ground, for example to to stop "scrapers" and "pay per posters" who steal NSSTA, SSP, NASP members' content and misrepresent our and their industries?
4. Who has the guts to help set business standards for how NSSTA members are expected to deal with factoring questions from annuitants and to communicate such standards to the public? How about an industry wide "pro bono" effort?

What the structured settlement and settlement planning industry does not need is another year of more people on the NSSTA Board who promise something and do nothing about this problem. We need action not apathy.

That being said I believe that Robin Young-Ellis represents the most viable candidate on this issue. Moreover, we need fresh blood and fresh ideas on the NSSTA Board.

Full post as published by Structured Settlements 4Real on April 14, 2008 (boomark / email).