I have been the Senior Vice President of Sales and Business Development at Stone Street Capital, LLC for three and a half years.  During my tenure here I have had the pleasure of working with the best account executives in our business.  One thing that I believe the industry “glosses” over is: What should sellers expect from a company purchasing their payments?

First (and foremost), sellers should expect to be treated with respect and care.

Your Settlement is important to you no matter how big or how small the payments are; we recognize that the decision to sell payments is a decision that should not be taken lightly by anyone, including us.  An account executive should listen to your needs.

Second, you should expect that we will ask you a lot of questions before we offer to buy your payments.  We aren’t trying to be “nosey” or “in your business” we are trying to figure out what is best for you to sell, and what will be approved by the court.  When we do our job perfectly you should expect us to listen to what you need and why you need what you say you need, you should then expect us to ask you a variety of questions that will help us understand how the court will view this transaction.  Each and every transaction that we buy has to be court approved by a judge so expect us to know what will be approved and what won’t be approved.

Third, in addition to expecting us to ask you questions and listen to your answers, you should expect that we will be able to quickly get you a quote.  Expect us to work on our end to help you solve your financial problems as quickly as we can.

Fourth, the most important expectation that you should have is that the offer we give you in our contract will not change.  All fees will be disclosed and the money that you get will be exactly what we tell you will get.  This is an absolute and we expect that you deserve to know exactly what is happening; the timing of the transaction and the exact dollar amount that we will give you after the court approves your transaction.

To wrap up what you should expect:

1) Account Executives should be listening to your needs.

2) Account Executives should be asking you a lot of questions to help determine how your transaction will get approved.

3) Account Executives should be quick giving you a quote after we collaborate with you on what fits your needs.

4) Account Executives will disclose all fees and any other expenses that will be incurred during this process and

5) STONE STREET CAPITAL, LLC WILL ALWAYS DELIVER THE MONEY WE TELL YOU WILL RECEIVE AFTER APPROVAL.

Popularity: 2% [?]

In my last blog, I gave an example of an annuitant that Stone Street turned away because the US Government would not consent to the transfer of his structured settlement payments. I noted that this conversation took place in 2004. In his blog yesterday, John Darer points out that I could not come up with a more recent story, and he was correct. I have not directly spoken to any annuitants (or their attorneys) who are receiving their payments from settlements with the US Government since that last conversation in 2004. John Darer suggests that since I could not come up with a more recent example, these situations must be few and far between. Darer made an interesting logical jump, but his conclusion is certainly not based in reality. In truth, there is a better and more obvious reason why I have not spoken to a US Government annuitant since 2004. In 2004 (immediately after my conversation with the Department of Justice) Stone Street enacted a policy that we would not even consider doing business with an individual receiving payments from a US owned annuity. In light of the Department of Justice’s intransigence, we really had no other choice. While history stopped for Stone Street in 2004, it certainly has not for the annuitants or for other purchasing companies. As a member of the NASP Legal Committee, I have heard stories from other purchasing companies about annuitants that have had their petitions rejected by the US Government as well. I assure you that there are many other much more recent examples of the serious damage done to these annuitants in an effort to “protect” them from “the hyenas” that John Darer has labeled this industry. I wonder if anyone has asked the annuitants whether they want this “protection”.

Popularity: 4% [?]

In his blog post today, John Darer seems to applaud the fact that individuals who receive settlements from the U.S. Government under the Federal Torts Claim Act cannot sell their structured settlement annuity payments.  He suggests that this is a victory for plaintiff’s attorneys who are worried that their clients would be tempted to “blow their recovery.”  As someone who has actually spoken to individuals with U.S. owned annuities, I am not applauding any decision of any court that supports the U.S. Government’s position on these matters.   Back in 2004, I had the unfortunate responsibility of having to break the bad news to an annuitant’s attorney that Stone Street could not purchase his client’s structured settlement payments.  Despite several conversations with the Department of Justice, I could not convince them to consent to a transfer.    In that case, the annuitant at issue was sitting in prison for failure to pay child support – quite a bit of child support.  The state court that placed him in prison suggested that the annuitant sell part of his payments to satisfy the massive debt.   While the state court was concerned about the welfare of the annuitant’s children, the Department of Justice did not share the judge’s concerns and vetoed any transfer.   I can’t help but wonder if the annuitant’s attorney regrets having recommended that his client structure that settlement.

In an attempt to prevent annuitants from “blowing their recovery”, the Department of Justice has ensured that individuals facing foreclosure,  major medical expenses, needing a prosthetic limb, or other pressing personal or family needs cannot get access to needed funds.  In light of the U.S. Government’s intransigence on this subject, plaintiff’s attorneys should fully disclose the substantial risks of structuring a settlement with the U.S. Government.

Popularity: 7% [?]

Imagine, just for a second, what life would be like without the internet.  That’s right, NO internet purchasing, NO anonymous fact finding, and worst of all, no “Googling”.  OK, you can stop imaging that terrible, terrible world.

The fact is that the internet has changed the way most of us do everything in life – especially researching products and services.  Internet searching has become the fastest and easiest way to get the information we need, anytime, and almost anywhere.  But with the vastness and anonymity of the internet, we must all take great caution what we read – especially when your research involves an important decision, like selling your structured settlement.

There are websites, advertisements, blogs (just like this one), discussion groups, happily posting information each and every day.  But just because it’s on the internet – doesn’t make the information, or advertising, true. 

For example, every lump sum company will advertise they are the best, most trustworthy company in the business.  Why wouldn’t they?  The term “best” and “trustworthy” are subjective – so legally it cannot be argued.  So how would someone searching the internet know if a company is the “best” or most “trustworthy”?  Like so many others, I check the company’s rating with the Better Business Bureau (www.bbb.com). 

Stone Street Capital’s A+ rating is based on over 20 years of ethical business practices, honesty and integrity in the marketplace - not just words in our website or advertisement.  In fact, Stone Street Capital has been featured in the Better Business Bureau’s “Start With Trust” campaign – a true testament to our continued pledge for overall customer satisfaction.

The point is, know your sources, get your facts, and make sure that if you do sell your structured settlement, work with a company that has an A+ rating with the Better Business Bureau and has years of experience to back up their statements.  Or you can just believe what the company tells you on their website.

Popularity: 7% [?]

Every day people are searching on the internet for information regarding secondary market companies that will buy some or all of their structured settlement payments.  Common searches such as “sell my structured settlement payments” will produce 100s of hits.  How does a potential seller determine which companies to consider doing business with? 

Here are a few tips – 

1. Look for companies that have been in business at least 15 years – this shows stability and that they are not a “fly by night”.

2. Look for companies that are members of the National Association of Settlement Purchasers (“NASP”) – this is the industry trade association and the industry leaders are members.

3. Look for companies that are Better Business Bureau members

4. Look for companies whose web site shows that they  have invested a substantial effort in creating the web site.

5. Look for companies that don’t hide their location or other corporate information. 

If you follow the above advice you should have no problem locating companies that are safe and reliable to do business with.  

Popularity: 8% [?]

Structured settlement recipients have their annuity set up to be paid over a stated period of time.  Structured settlements do not permit the recipient to change or accelerate the payment stream at will.  For some people, a structured settlement may prove to be inflexible.  In the majority of cases, the set date and amount of payments works fine.  However, when a settlement recipient has an unforeseen financial need they do not have the ability to alter the payment stream on their annuity.    

The structured settlement purchasing industry provides flexibility and options to those that have a settlement and need access to cash.  Purchasing companies provide structured settlement recipients the flexibility to convert all or just some of their future payments into cash

Recipients can receive the money they need to meet their financial obligations and still receive future payments to the extent that they choose to keep a portion of their future payments.  In fact, the majority of settlement recipients that decide to sell payments only sell a portion of their payments. 

The purchasing industry is helping those that have a great financial need to have the flexibility to access their money when they need it.  

Popularity: 11% [?]

More and more people are finding it difficult to access cash via credit cards and personal loans these days.  This credit “freeze” can be even more difficult on those that who have been injured and are unable to work.  Many people receiving structured settlement payments are using the lump sum option to get the money they need now. 

This may be a good option for some structured settlement recipients.

A cash lump sum payment is not a loan that needs to be paid back.  Taking out a loan or using credit cards may help for the short term, but the additional debt accumulated may worsen your financial situation even more.  Using the lump sum option to access cash for some of your payment stream and keeping the rest intact will allow settlement recipients to maintain the stability and security of a payment stream, while still providing a cash lump sum without the additional debt burden associated with personal loans and credit cards (which may have caused the short term cash need in the first place).

Popularity: 13% [?]

Should I be Concerned About My Insurance Company Making My Annuity Payments?

The financial downturn has hit insurance companies, but you should not panic or take any action that you might regret.  Insurance companies are regulated by State authorities and annuities are backed up by state guarantee funds.  So you should feel safe.  There have been no insurance company missed payments on structured settlement annuities during the current financial crisis that we are aware of.  

Selling structured settlement payments often does make sense for many persons who have pressing financial needs they cannot otherwise address.  These reasons could include: paying debts to avoid bankruptcy or foreclosure, buying a home, or paying for college.   If you have a concern about your insurance company that is paying your annuity you should not hesitate to contact the company to discuss your issues.  

Popularity: 14% [?]

Did I Make a Mistake agreeing to a Structured Settlement If it Later Turns Out that I have to Sell Some of My Payments?

As everyone knows “hindsight is always 20/20” – but the answer to the question is clearly “no”.  The vast majority of structured settlement recipients never sell any of their payments, and those that do usually only sell some of their payments.   If a structured settlement made sense at the time of settlement then it was the best course of action and no one should regret entering into a structured settlement under such circumstances. 

While needs and circumstances may change, thus making the option to sell an intelligent choice, that does not vitiate the vitality of the original decision to enter into a structured settlement.  A properly designed structured settlement can provide for future needs but no settlement can contemplate all future events and circumstances.   In any event, choosing to sell some of your payments may be a wise move given the circumstances and doing so does not make the original decision to enter into a structured settlement a mistake. 

Popularity: 16% [?]

In my last blog post, I wrote about my thoughts on a transaction that was going to court the next day.  I explained that this was a transaction where the annuitant was selling an annuity, in part, to create a rainy day fund.  While I was initially concerned about the reasons, I spent several hours with the annuitant, her family, and their attorney.  The attorney explained that the annuitant could not sleep at night because of her fears that she did not have the liquid resources to react to any crisis.  At the end of the meeting, the parties convinced me, but I knew that the real challenge was getting this message across to the judge in a formal hearing.    That night, I was the one who could not sleep (which is why I was writing a blog on the issue at 2:00 in the morning).    At the end of the day, the judge was very understanding.  He carefully listened to the annuitant’s presentation.  He empathized with her situation, and even added a few of his own concerns about their current situation to the discussion.   I am happy to report that the judge approved the transaction, and that the annuitant will be receiving her funds on this transaction in a few days. 

Popularity: 17% [?]