Litigation

"NSSTA Has Softened Its View Of Factoring" -Patrick Hindert Report To SSP April 28 2009

By John Darer

According to our sources who attended, author and NSSTA legal committee member stated that "NSSTA has softened its view of factoring" during his presentation at the Society of Settlement Planners meeting in Washington DC yesterday.   I wonder what that means. I'll bet a whole slew of trial lawyers do as well.

Hindert's outrageous statement, in the same breath as reporting that factoring discount rates have increased from an average of 10% to an average of 20%, if proven true, would be both a credibility destroyer and potential self destruct button for the NSSTA.

The NSSTA established a Branding Commitee in June 2008 to examine ways to increase the structured settlement brand in a space dominated by the once bloated advertising budget of JG Wentworth and others and to counter blatant false advertising.

The settlement industry credibility on factoring is unfortunately, already on tenterhooks given that

1. Bentzen Funding Solutions appears to be the brokerage front for a cash now pusher, Structured Asset Funding. Patrick HIndert reported on October 26, 2008 in NASP Annual Meeting-3, that prominent settlement planners MIchael Upchurch and Jack L. Meligan said that "the "bad" part of factoring results from non-professional ("cash now") advertisements promoted by many factoring companies.  Such advertisements (characterized as "Jerry Springer-type" commercials) are unprofessional and damage settlement planners' relationships with plaintiff attorneys and reduce structured settlement sales. Meligan and Upchurch allegedly said that not only do plaintiff attorneys dislike "cash now" advertisements, they are also less likely to recommend structured settlements if they believe their clients will eventually sell their payment rights. They recognize and disapprove of the temptations created by such advertising. Meligan and Upchurch both predicted continued negativity toward the secondary market from the primary market so long as factoring companies continue such advertising.

2. Rhonda Bentzen has ostensibly admitted to paying off 90% of the structured settlement brokers who send business her way, many of whom are members of NSSTA and/or SSP.

3. Rhonda Benzten is, or recently has been, membership chairwoman of the Society of Settlement Planners.

4. 5% of the industry not participating in a structured settlement transparency initiative.

5. Little to no industry disclosure of factoring activities by industry members.

6. An industry member advertised that it was purchasing structured settlements in 2006. A principal of that firm is membership chairman of NSSTA.

7. The domain name of a factoring company was registered on the down low by an NSSTA member, until exposed by this blog.

8. NSSTA and a number of its members ostensibly attack the manufacturer of a structured settlement alternative where there is no need or ability to factor.

Is there a cover up some where?

Full post as published by Structured Settlements 4Real on April 28, 2009 (boomark / email).