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Seneca One Gets Denied in New York

Tuesday, February 19th, 2008

A New York Judge denied one of Seneca One’s affiliate companies from completing a structured settlement factoring transaction where Brian K. Ciemielewski was trying to sell a $100,000 payment paid out in 2024 for the amount of $10,000.

“Quite frankly, this purported deal speaks for itself,” Judge Lebous wrote in his ruling. “This court will not approve a payment of $10,000 in exchange for 10 times that amount in future payments of $100,000. Based on the foregoing, the court finds said transaction is not fair and reasonable….Quite simply, this court finds the transaction is not in Mr. Ciemielewski’s best interest.”

This proposed deal put forth by Seneca One is an example of a factoring company preying on a tort victim. Cases like this give the factoring industry a bad reputation.

What makes an individual sell future payments of $100,000 for $10,000?

Desperate times call for desperate measures, but what Mr. Ciemielewski failed to realize is that there are better offers than that of Senecaone’s offer. Mr.Ciemielewski had previously sold $75,000 worth of settlement payments in two separate factoring transactions for the amount of $36,400 to JG Wentworth and Symetra Assigned Benefits.

Without knowing the details of the transaction, it is hard to say the reasoning behind Mr. Ciemielewski’s decision.

Executive Life Insurance of New York Structured Settlement Factoring Transactions

Wednesday, February 13th, 2008

It has come to this authors attention that consumers are having a difficult time factoring settlement payments where the original payee was Executive Life of New York. Several individuals have contacted us complaining of companies dropping their entire case days before the court date.

Settlement Quotes has been able to locate a few investors that are willing to purchase Executive Life Insurance of New York payments which are currently being payed out by Metropolitan Life (MetLife). Feel free to contact us to receive more information.

Why is it More Expensive to Sell Less?

Thursday, February 7th, 2008

The following statement: “it is more expensive to sell less,” when referring to a structured settlement factoring transaction is true when speaking in structured settlement factoring language. The pricing structure of the factoring market uses discount rates as a scale to determine the cost to the annuitant or tort victim. There are several reasons that it may appear to be more expensive to sell less of your structured settlement.

Every structured settlement factoring transaction has standard costs associated with it. Below is a pie chart outlining these costs:

Structured Settlement Factoring Costs

Filing fees and court costs range from $2300- $2800 depending on the state
Insurance transfer costs range from $500- $800 depending on insurance company and double if the payments are split
Miscellaneous fees usually range from $150- $175
Lien search costs are $300 (to make sure that the annuitant does not owe taxes, child support etc.)
Fedex costs $50

These standard costs are present on every structured settlement factoring transaction whether the tort victim is selling a present day value annuity of $10K or whether they are selling an annuity with a present day value of $100K. The discount rates of the annuity are effected by the amount of costs to complete the transaction. The graph below illustrates the scenario.

Structured settlement factoring discount rates

As you can see the larger the present day value of the annuity, the lower the discount rate of the transaction equates to.

This scenario is an example of how the discount rates are effected by the standard costs of a factoring transaction. Settlement Quotes does NOT suggest to sell more structured settlement payments to reduce the discount rate of the transaction.

This blog post is to help tort victims and other financial professionals understand the relationship between the present day value of an annuity and the discount rates of a transaction. If you have any questions or concerns, please comment below and if you would like to learn more about structured settlement factoring click here.

Peachtree Settlement Funding Secures Another $200 Million of Funding

Thursday, February 7th, 2008

“They charge customers extremely high rates 19.99 is the MINIMUM that they will do a transaction for, unless a manager approves something lower (which is rare). Other companies will charge much lower rates and get you more money almost every single time.”

The above quote came directly from an ex employee of Peachtree Settlement Funding on this article from Rip Off Report. How does a company who has rates of 19.99% continue to thrive in todays structured settlement factoring market?

Attention: Tort victims who are selling structured settlement payments, DO NOT GO TO PEACHTREE SETTLEMENT FUNDING! You can receive a better quote be talking to any other company in the factoring market. The difference between the 19.99% and a 10% discount rate could mean tens of thousands of dollars for you and your family. Do yourself a favor and get a second opinion before signing any documents with this company.

This company is able to offer these types of rates due to uncompetitive lead generation from both television and internet advertisements. While annuitants will most likely receive a second opinion on the internet, most television victims will not shop around for another quote. This is unfortunate for both tort victims and the structured settlement factoring industry.

Peachtree Settlement Funding needs to step up and set a better example. These types of rates were seen in years past but are slowly dwindling. It is sad to see a company that can still get away with horrible discount rates like those of Peachtree Settlement.

Settlement Quotes Press Release- February 2008

Tuesday, February 5th, 2008

Settlement Quotes issued a press release today announcing the official start to our online portal- Structured Settlement Factoring Company Launches Online Market Place to Sell Structured Settlement Payments.

Press Release Settlement Quotes

This press release was also indirectly aimed at the settlement planners, brokers, lawyers, and other financial professionals who have a client that is out of other options and needs to factor settlement payments. Why not get a second quote from a different source?