Lately there has been an industry shift where the Judges who preside over structured settlement transfers, having been continuing cases in order to give the payee time to find qualified independent professional advice. But why?
The Structured Settlement Protection acts have been in effect for awhile now, so why do judges now find a need to refer to Independent Professional Advisors?
The judges have been seeing these transfer come through the courts on a regular basis and have noticed that there seems to be a pattern of question ability in the amounts. Not having the time or the resources to review each and every case thoroughly they have started using a clause in the structured settlement protection acts themselves, that allow for a third party review by a qualified Independent Professional Advisor. They have notice upon doing this the payee a lot of times comes back with a much different transfer price, when the deal is shopped to 3 other purchasers.
What an IPA originally started out was to just make sure the payee understood what he was selling, how the math worked, and that they had their own best interests in mind. Now the Judges have seen these same IPA's as a tool to ensure that the payee s not being over charged, with out using court resources to do so.
Some states have gone so far as to make the purchasers of the structured settlement payments pay for the independent professional advisors, and most state have set a cap on the costs that can be charged for their service.
What does this mean to you the consumer? Well the judges have taken the liberty of protecting you one step further. There by taking their role as a consumer protector in the best interest to the next level.
Judges typically do not like these transfers and if they could and have attempted in the past to flat out deny any and all transfers that come across their bench. As we know the court system relies on revenue from filed cases to keep its doors open, so flat out denial is not beneficial to their revenue stream. As many factoring companies have realized that simply avoiding certain judges and sometimes counties is the only solution.
With the implementation and usage of Independent Professional Advisors now allows the judges to feel they are protecting the consumer and rule on these transfer with a clear conscience, and although the factoring companies may have to spend a little more money they are still able to acquire deals in counties they had previously thought they would have to avoid.