Did you know that the National Structured Settlement Trade Association, more popularly referred to as NSSTA, does not have any companies or individuals working for it which will ever buy structured settlement payment rights? No one in its organization ever indulges in activities related to purchasing the settlement rights back from the clients and there is a reason why the situation is as it is. The members of NSSTA have come up with what you know as the structured settlement business and it is what it is today because of their efforts. Now, if they start buying the payment rights they sold, they would basically be destroying their own scheme. It is not difficult to appreciate them for excluding companies who want to destroy the salient scheme of structured settlements and for furthering their mission even more. Factoring companies, as they do not have any support from NSSTA, have their own trade association in the National Association of Settlement Purchasers which promotes buying and selling structured settlement rights under this protection act.
Even knowledge management guru Patrick Hindert applauds the Society of Settlement Planners on his blog “Beyond Structured Settlements” as they have included these factoring companies. Despite the fact that NSSTA is opposing their activities and intentions, the guru seems to have appreciation for the open mindedness of Society of Settlement Planners. This can be justified and when looked at in a different light, it seems like a liberal move but one should also consider how factoring companies actually make much more profit in the guise of a helping hand.
Some experts are absolutely against the involvement of factoring companies and consider them a disgrace because of their totally financial motivation and promotion of greed over thought. These experts feel that the addition of factoring companies is not open mindedness but a financial motivation. This has led to several arguments from time to time with the board members of the Society of Settlement Planners trying to justify the inclusion of factoring companies with statements such as “factoring has always been part of settlement planning and deserves its share of attention and popularity”.
Structured settlement brokers who question the inclusion are thought of as those who do not have any sense for openness and seen as close minded when in fact, they are just pointing out that the main purpose why factoring companies exist is that they want to make money off unsuspecting and not so knowledgeable clients. It might be true in some people’s eyes that factoring is part of settlement planning but according to many experts, it is just a financially motivated beast with no actually good intentions for its customers. It is a destroyer of the salient features of structured settlement schemes and should not be allowed.
The laws which have been poorly written and published finally did not let the Society of Settlement Planners to exclude factoring companies even when they tried to do so. Thus, the end result of all this was that the Society of Settlement Planners took the factoring company money. This happened a long time ago, by the way, and in the March 2005, there was an annual meeting of the Society of Settlement Planners in Washington DC. In the meeting, the attendees were confronted by factoring company representatives at virtually every turn who wanted their money back. It was noted that one of the representatives had allegedly asked the head of a major structured settlement brokerage to go through his files. Apparently, he wanted him to see which ones were candidates for a factoring company approach. Fortunately for the entire association, the head of the brokerage ignored him and did not allow his requests to proceed. The move was a good one as factoring companies resorted to offering out referrals and other incentives to some structured settlement brokers and settlement planners.
In the end, the only question which made the most sense was why give factoring companies a seal of approval when their terms have always been shady and never clear? Even those who regularly browse the internet have no idea what their actual policies are and these companies are good at only fooling their clients into doing things they should not. Factoring companies want to become a legitimate part of NSSTA and SSP to enhance their credibility, which otherwise is just not there.
It is the opinion of many that factoring companies have no legitimate place in the industry and they do not deserve anything at all. Their methods of working do not have any credibility and their line of work does not represent the real essence of structured settlements. They are part of the factoring industry and should remain in their place instead of trying to add more credibility to their business by becoming a part of NSSTA. They are vendors who provide a service which is in the simplest and the most straightforward terms, buying structured settlement payment rights in exchange for a discounted lump sum of cash, to those that are in desperate need of cash.