Litigation

"Code of Ethics" National Association of Settlement Purchasers

By John Darer

The following appears on the website of a settlement purchasing company and is represented as the NASP Code of Ethics:

"Be it resolved that NASP shall adopt a code of ethics for its members as follows:

A) A member in the conduct of his or her business shall observe high standards of commercial honor and just and equitable principals of trade;
B) A member shall comply with all laws governing the members? operations, and shall conduct its business so that the member deserves and receives recognition as a good and law abiding citizen;
C) A member shall be accurate and complete in its contract negotiations with prospective customers;
D) A member shall not engage in any unfair methods of competition; and
E) A member shall not take any unfair advantage of a prospective customer, and shall insure that the prospective customer is legally capable of entering into the transaction contemplated"

This author is grateful that Settlement Capital has posted the above on its website as it is the first time that this author has seen anything regarding ethics written under the aegis of NASP. This author has found Settlement Capital to be one of the more ethical factoring companies when it comes to advertising, in addition to enjoying the occasional debate with its General Counsel. This post however, is not about Settlement Capital.

With respect to the purported NASP "Code of Ethics":

1. Is there enough wiggle room to cover documented false advertising in the settlement purchasing (factoring) industry?
2. Is "Cash Now" pushing that is prevalent in settlement purchasing industry an example of "observing the high standards of commerical honor"?

It's all well and good for NASP to have a "code of ethics" but without enforcement it is relatively meaningless window dressing.

Full post as published by Structured Settlements 4Real on January 12, 2009 (boomark / email).