July 9, 2014 11:56 a.m. PDT
Independent Professional Adviser Interprets Disclosure Statement
Structured Settlement Transfers are Still Confusing
For an interpretation on money matters in the disclosure statement see our last article, "The Disclosure Statement for a Structured Settlement Transfer: What They're Really trying to Tell You With the Numbers". In this article, we interpret the rest of the disclosure statement.
California legislature sets the standard for the disclosure statement. The California legislature makes the transfer company follow an exact format, with exact words to write, to inform you the consumer what is going on; this is why the disclosure statement confuses the consumer, because it is literally taken from the California Code of Insurance.
There are typically 2-4 pages. The first pages announces the "sale", and breaks down how the money went from the original price to the price with which you walk away, as is stated in the article we mention above.
The second page explains why you need an independent professional adviser and advises you to get independent professional advice. The courts want you to have an independent professional adviser, and state that you have $1,500.00 to accomplish this.
On the second page, it also states that you will not receive any money until a court approves the sale. -Even more reason to get help from an independent professional adviser.
Then the document goes on to explain how you can cancel the contract before court approval, but you have to do it in writing. You do not need any special form. You send your written cancellation to the transfer company. Make a copy! There is a time frame here. Contact your independent professional adviser for guidance on the time frame.
If there is a third page, it is giving you information on how to contact your District Attorney if you feel you were mistreated, or mislead. Then there is room for your signature. THIS IS NOT THE CONTRACT. This document is submitted in court. Without the disclosure statement, the sale will not go through.