Seeking To Transfer Payments The 2nd Or 3rd Or 4th Time Around
Block 18.1 Article 2.3 Transfers of Structured Settlement Payment Rights
Seeking to Transfer Payments the 2nd (or 3rd or 4th) Time Around? Read This:
The first transfer company cannot make you continue to do business with them, but practical considerations often make it difficult for a payee (person selling their payment rights) to change transfer companies, unless all of the payments assigned to the first transfer company have been made before the payee proposes to transfer payment rights to a different company.
Beware! The discount and/or interest rates offered to payees in second or subsequent transactions are -more often than not- higher, sometimes a lot higher, than the rates charged in initial transactions.
Transfer agreements entered into before the enactments of Structured Settlement Protection Acts, and before the enactment of IRC Section 5891 were tougher to get out of commitments with transfer companies. Transfer companies had contracts that bound the payee to do business with only that transfer company if there were subsequent or future sales of payment rights.
Even without that hindrance, it is still difficult and time consuming to negotiate a fair price for your subsequent transfers. At this time, hiring an independent professional adviser skilled in this industry can be crucial. Independent professional advisers know the market, especially the second, third, or fourth time around for a payee, and can get a better rate for your dollar.
Call today for a free consultation.
Information gleaned from Daniel W. Hindert and Craig H. Ulman 2005