Litigation

Looming Credit Pullback Puts Structured Settlement Recipients in Financial Crack Dealers' Sights. BEWARE!

By John Darer

According to Oppenheimer banking analyst Meredith Whitney cited through Reuters, the U.S. credit card industry could pull back well over $2 trillion of  credit lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending. Whitney believes that available consumer liquidity in the form or credit-card lines will decline by 45 percent.

All of the big names like Bank of America Corp, Citigroup Inc and JPMorgan Chase, which represent over half of the estimated credit card lines outstanding as of September 30, 2008 have discussed reducing card exposure or slowing growth. With the dominated by players all pulling back liquidity, reductions in consumer liquidity seem unavoidable.

Whitney warns of the danger of pulling credit when job losses are increasing by over 50 percent year-over-year in most key states.

Such credit pullbacks could make the most vulnerable of consumers, tort victims and the elderly more susceptible to unethical sales practices of certain factoring industry players that purchase structured settlement payment rights (a/k/a "financial crack dealers" or "cash now pushers". It should be "Giuliani Time" for the factoring industry.  Clear the worst of them "off the streets and air waves" and set standards for those that remain that include (1) professional licensure (2) rules concerning advertising and solicitation (3)full disclosure of all costs including who is getting paid from the deal up-front.

Full post as published by Structured Settlements 4Real on December 01, 2008 (boomark / email).