If you’re selling a structured settlement, lottery award, or other stream of payments, you already know that the companies who buy these settlements do so in order to make money. Any Internet search will reveal plenty of court cases and complaints that prove bad guys really are out there, and they may be coming for you.
You should always get several offers for your settlement. Using a service like Quote Me A Price will help you shop it around to numerous buyers. But how else can you check them out?
Check for Complaints. A simple Internet search can yield information about the companies you are considering. But since it’s easy to trash a company online, also check with the Better Business Bureau and your District or State Attorney’s office for formal complaints against made against prospective buyers of your settlement. Common complaints include taking longer than promised to make the sale, or the company changing the terms of the sale from the original bid.
Outrageous Discount Rate. The discount rate is what the prospective buyer uses to determine how much cash he is willing to pay for your settlement today. Companies consider many things when figuring this rate, such as the cost to borrow the cash they will need to pay you; lost interest revenues on the cash they will pay you; the risk of taking on a stream of future payments, the operational costs of doing business (a.k.a. overhead), and, of course, profit. Opinions vary on what constitutes a “reasonable” discount rate, but the higher the discount rate, the less money you’re going to get. Compare the offers you’re getting and, as always, think hard about whether selling your settlement is your best option.
Big Fees. Check any deal you get carefully for “attorney fees,” “processing fees,” “service fees,” or anything else that looks like an extra charge. If you get stuck paying this, it is just one more chunk out of your settlement on top of the profit the buyer will make. Even once you agree to a deal, keep checking the fine print every step of the way to make sure the seller isn’t changing the terms on you midstream.
High Pressure. Beware any company that tries to get you to settle quick, discourages you from soliciting offers from other companies, hides the fine print, uses “their” attorneys or financial advisors to convince you you’re getting a good deal, or any other tactic that makes you feel uncomfortable. Don’t reveal other offers you’ve received to prospective buyers. Selling a structured settlement is an important financial decision, and should never be rushed. Always get your own, independent advice. Be skeptical and don’t trust the settlement buyer blindly – even if they’re not trying to cheat you, anyone can make a mistake.
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.
