If you’re reading this, you’re probably giving serious thought to selling all or part of a structured settlement you own in order to gain quick access to cash. If you decide to go through with it, though, understand that the companies who buy settlements are in business to make money, and you have to protect yourself through every step of the transaction. So, consider the following list of red flags that should make you reconsider the deal.
Bad Reputation. Before you even accept an offer, you should research prospective buyers to see if they’ve racked up consumer complaints. The Better Business Bureau and/or the Attorney General for your state are the best places to find what other consumers have said about your potential buyer. The more complaints you find, the bigger the red flag.
Warp-Speed Deal. Typically, a structured settlement sale averages about 45-60 days from initial offer to closing. It can take longer than that, depending on the state where you live. If a company is promising to close your deal in just a few weeks or days, they’re likely trying to prey on your need for quick cash. They can’t keep that promise, and you shouldn’t use them.
Unrealistic Starting Offer. If you’ve used a site like QMAP to get competing offers from several structured settlement buyers, great. You should always get multiple offers. But don’t just bite at the biggest offer you get. A common complaint about settlement buyers is that the company reduced its offer after the initial contracts were signed; so, an opening bid that’s way out of whack compared to other companies may mean the buyer is trying to lure you in…and may try to pull a fast one later.
Changing the Terms. Disappointed sellers have complained – often – that as soon as the ink is dry on the initial contract, the buyer will begin whittling down his price and/or introducing fees. Yes, if you back out, you’ll have to start the process all over again with another buyer, but it’s worth not being taken advantage of.
Pressure. Like any big financial decision, beware high-pressure tactics to get you to sign a contract right away, take an offer without getting competing bids, or to ignore changes made to the initial deal after the contracts are signed. And make sure you read and understand every agreement you’re given before you sign; if you have questions and the buyer avoids answering them or just tells you not to worry, consider it a deal-breaker.
If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.
