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John Darer sent the email below to factoring broker and Society of Settlement Planners membership chairperson Rhonda Bentzen today as part of the unending effort to seek the truth about compensation of settlement professionals on structured settlement factoring referrals.

For the attorneys, judges, new readers and other interested parties reading this blog, Rhonda Bentzen is a former structured settlement broker who became a factoring ("cash for structured settlement") broker in or about 2002. She is believed to be popular with many structured settlement professionals, including some that you attorneys and judges may already be working with. In December 2007 Ms. Bentzen disclosed that 90% of her clientele, composed primarily of structured settlement brokers, took fees she offered, many of which she stated in a June 2008 Legal Broadcast Network video interview with Mark Wahlstrom,  were for little more than a referral. The sellers of structured settlement payment rights typically face foreclosures on their homes and increased financial pressure. We have testimony of at least two other factoring experts that such compensation has the effect of a reduced amount paid to the tort victim at a time of heightened financial stress.

Whether such compensation is ethical or unscrupulous is a matter of opinion. Yet most would agree that failure to disclose up front at the time a quote is delivered is particularly troubling. This author has seen few if any such settlement professionals who disclose such fees in the list of services posted on their websites and less than 5% of the industry was willing to attest that they did not take such compensation.

The email March 26, 2010

"Dear Ms. Bentzen:

Very truly yours...."

Ms. Bentzen's revelation about 90% of the structured settlement industry working with her in December 2007 was a major industry negative. Alternative product providers advertise the non factorability of their product as a reason to do business.

She would be doing her own clients and the industry a favor by being specific about the state of affairs today (i.e the"percentage" taking fees, instead of simply stating that it was lower) without superfluous commentary so that the issue may be laid to rest.

This author hopes (and HAS BEEN hoping for well over a year) that Rhonda Bentzen will simply respond to the questions to back up what she has said or stated in writing.