Litigation

To its credit, The Society of Settlement Planners created a Standards of Conduct for Settlement Planners in 2008.  The society took a bold step in including a standard for factoring of structured settlemens. The rule deserves a re examination given that the SSP has recently named a factoring company representative to its Board of Directors and the revelation that said board member was out bid by 50% a particular case.

Excerpt from the SSP  Standards of Conduct for Settlement Planners:

Rule 9: Factoring Structured Settlements

(a) A settlement planner shall not participate in a structured settlement that restricts the right of a

claimant to factor rights to future payments in conformity with the provisions and requirements of the Internal

Revenue Code and applicable state law unless the claimant or the claimant?s lawyer gives informed consent

confirmed in a writing separate from the settlement agreement.

(b) A settlement planner shall not solicit by in-person, live telephone or real-time electronic contact

employment by a person known to be entitled to future payments as the result of the settlement of a claim in

connection with the factoring of the person?s rights to such future payments.

(c) A settlement planner who is requested by a person entitled to receive future periodic payments to

provide advice and assistance in connection with the factoring of those payments may do so if:

(1) the settlement planner reasonably believes that the factoring transaction will be in the

best interest of the payee, taking into account the welfare and support of the payee?s dependents and any

standards or requirements under federal or applicable state law state, including any financial hardship

exceptions; and

(2) confirms in writing the existence of and the basis or rate for determining any

compensation to be paid to the settlement planner for providing such services.

Comments