Over the past few months several companies have come forward requesting more information about becoming a funding partner in the Settlement Quotes network. With all due respect to the companies that have been denied, we use the highest standards possible when approving a company or investor to provide factoring quotes for our client's structured settlements.
Here is a brief look at the qualifications we use to approve a funding source.
It is important that a company demonstrate competitive rates on every transaction they provide quotes for, regardless of whether it is a Settlement Quotes' client. These rates have to remain consistent whether the transaction is competitive or uncompetitive.
Better Business Bureau Record:
A company has to demonstrate that they do not receive frequent complaints through the BBB. We will accept a company if they have complaints, but we request more information on the reasoning and resolution to the complaints. If a company receives complaints on a regular basis they will not be accepted.
There are a few companies that use tactics such as "interest drag" to gain profits off of competitive factoring transactions. A company that uses this tactic will not be accepted into the Settlement Quotes network. Recently, another tactic has been observed by our legal and sales staff, which is frowned upon by our company. "Servicing" of annuity payments by structured settlement factoring companies is becoming more and more prevalent and will not be tolerated by Settlement Quotes.
"Servicing" is when a factoring company purchases the rights to an individual's settlement payments, but instead of transferring only the purchased amount of settlement payments, the factoring company transfers the entire structured settlement annuity into their company's name. The company now receives a check in their name and then pays the tort victim when they are scheduled to be paid. This takes the power out of the tort victim's hands and significantly reduces the present day value of the structured settlement.
Any company that uses these types of tactics are not accepted into the Settlement Quotes network.
This is a brief look into the guidelines and acceptance policy that we use at Settlement Quotes. If you have any further questions, please let us know.