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This evening, John Darer called out the factoring industry to voice their opinion on the following question:

"Do you agree with Rhonda Bentzen who asserts that paying structured settlement brokers and settlement planners a commission actually gets the tort victim more money in a structured settlement factoring transaction?"


"Do you agree with Bracy and Springer who each say that the taking of commissions directly affects the purchase price to the tort victim in a structured settlement factoring transaction?"

To answer John's question: I agree that the taking of commissions does in fact affect the purchase price to the tort victim in a structured settlement factoring transaction.

As a structured settlement factoring broker I cannot see any other way to answer the above question. Logically speaking, if the settlement planner or structured settlement broker is NOT taking a referral on the deal, then that money should be going to the tort victim, Right? Uh huh, I found the answer:

Rhonda Bentzen December 21, 2007: "The referral fee ultimately saves the annuitant money and comes out of my pocket anyway."

Hmmm, that doesn't make much sense but lets try working with an illustration instead.

Rhoda Bentzen and John Darer Factoring Vig Illustration

I would have to say that B is the correct answer.

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