Structured Settlement Expert Provides Consumer Protection
After many years in the structured settlement industry, focusing on providing advice in; transferring structured settlements, under writing placement of structured settlement transfers, and the formation of factoring companies. The Law Offices of Eugene Ahtirski, realized the need for someone to act in behalf of the consumer.
The California structured settlement protection act, which is based on the federal structured settlement protection act and is the model for all state SSPA’s; was set up as a consumer protection law. The purchaser’s are typically large financial institutions, and the laws were set up to protect the seller and level the playing field. Insuring the buyer and the seller have equal bargaining power.
In the early days of structured settlement transfers, the need for an IPA was there but the understanding wasn’t so it was counter productive to have one. The attorneys who understood the transfers were working for the factoring companies, and could not be a true independent professional advisor. So if a seller was to contact a random attorney, if the attorney took the case, would have to learn the statues and then research and understand the complex financial computations needed to arrive at the fair market price.
Judges were often times unable to understand this complex calculation as to the resent day value and how the interest rates related to that, and what base the IRS code said to use for that year. The common mistake was to look at these as you would a car loan which in fact was completely backwards. It’s not their fault, this whole concept was created by high finance experts on wall street.
Now with the growth of this industry, more and more people are starting to understand how this works. More attorneys and judges are also learning the process of transferring a structured settlement. The financial side of the transactions are still complex and a basic understanding has been reached.
That is where after talking to judges and helping to educate them on the transactional side and the financial side, we at the Law Offices of Eugene Ahtirski, decided to follow in the footsteps of a handful of other attorneys. To be proactive in the education of what an IPA can do and to help protect the consumer.
Taking a vast experience and putting it to use in helping to educate Consumers both selling their [payments, and to the private investors buying the types of payments. The factoring companies have a host of attorneys in-house watching and advising them, so why shouldn’t everyone else? Or at least the consumer should be educated enough to make decisions, based on facts, not what a sales man says.