Before the 1960s, tort victims would receive their compensation in the form of a lump sum award after the resolution of a personal injury suit until the advent of structured settlements. Structured settlements split up the total compensation into future periodic payments to provide a steady income stream like whacking lottery winnings instead of a lump sum. The advocates of this scheme of compensation touted it for providing a resourceful tool for plaintiffs who had a less monetary knack to plan their finances more prudently. A few decades down the line, the squandering, and naïve tort claimants had long gone. The appetite for immediate lump sum awards carved out a niche for structured settlement funding companies. Like other lucrative sectors, the industry became infiltrated by deceitful companies that impose biting arbitration clauses, steep discount rates and promotion of sales against the annuitant’s best interests. Once again, the federal and state governments had to jump in with regulatory mechanisms.
Thomas Clarke who is a holder of a structured settlement payment package is entitled to monthly payments and lump-sum monetary awards. Rhode Island has a stringent regulatory regime on the sale of structured settlements. Clarke needed money to purchase a truck, pay off a mounting mortgage loan and keep his head above the waters. Transferring his structured settlement proceeds entailed a deal within the scope established by the relevant laws in his state.
Sell Structured Settlements in Rhode Island
Cross-Shopping for High Price Offers and Low Discount Rates
After deciding to hive off a chunk of his structured settlement payments to a factoring company, Clarke knuckled down to zero in a lavish price. He solicited for offers from fifteen businesses and asked for the discount rates applicable in each case. When he called Peachtree, he found a buyer. The company’s customer desk had warm and welcoming representatives, a low discount rate and a lump-sum award at whopping $150,000.
Structured Settlement Protection Act in Rhodes Requires Strict Disclosures Before the Judge and Payee
Clarke received a disclosure statement from Peachtree highlighting the total value of purchased payments, discounted present value of all payments, net lump-sum amount payable to him and a detailed list of attorney’s fees and expenses deducted from the price offer. The seller must show the net amount payable to the seller after all deductions and annual interest rates before a seller like Clarke executes the transfer agreement. The disclosures should also reach the judge in verbatim.
Rhode Island Court Process Before the Presiding Justice of the Superior Court
Peachtree filed a petition in the country Superior Court where Clarke was residing as provided in the state’s SSPA. In a brief courtroom session, the judge found Peachtree had made the necessary disclosures to Clarke, served all interested parties with relevant copies, the transfer served the best interests of the payee and the dependents, and admonished professional advice. Though it remains unclear why he got a quick approval in court, the discount interest rate and lump sum were fair, just and reasonable.
Rhode’s Law Requires You to Dig Up Your Case Number
Peachtree contacted the court’s registry where the original personal injury suit occurred. They retrieved the case number, nature of harm and amounts and terms of the settlement. Rhode’s law also required Clarke to disclose details about prior applications for court approval to transfer structured settlement proceeds.
The Bottom Line
Clarke cashed a check three days after the court approved his transaction. His lump sum monetary award was sufficient to cover the costs of buying a new truck, foot a whole range of bills and liabilities. Clarke still receives the remainder of his unassigned structured settlement payments casting his net wider for more earnings.
Distinguished Structured Settlement Funding Companies
Peachtree Financial Solutions dovetails with immediate cash needs of annuity holders in the secondary market, they file documentation in court, comply with judge-made orders and all state and federal laws.
Woodbridge Structured Funding has long-drawn-out expertise in the factoring of structured settlements; they will craft an agreement that adheres to your state’s SSPA, give a profitable lump-sum award and meet your demands without hiking costs.
Stone Street Capital is the only company that parcels out cash advances to structured settlement payees, annuitants, and lottery winners. They have the lowest discount and annual interest rates to augment your lump-sum earnings.