In this weeks edition of Speaking of Settlements, Matt Bracy of Settlement Capital joins host Scott Drake to discuss the implications in the factoring community of the Allstate vs Rapid Settlements case that went strongly against certain practices in factoring.
We have already covered some of this news in earlier posts, but Matt's concern was over the black eye and gratuitous bashing the factoring industry is taking in the press, when the vast majority of factoring firms in his opinion follow the clearly outlined state procedures they are required by law to follow.
This is a two part interview and commentary, with both parts included in this blog post.
I am sure there are a lot of people in the structured settlement industry who are delighted with this outcome, I know that personally I am as any factoring company that attempts to circumvent the court approval process and substitute it with a process of their own is a clear menace. Annuitants need and deserve the protection of court oversight and this is only one of several similar cases against Rapid Settlements nationally.
However, I do agree with Matt that as usual, the national press and some of the commentators are a bit over board in condemning the entire process instead of focusing on the fact that this is a clearly rogue operation that is getting the appropriate treatment in courts when life markets like Allstate, Symetra and others stand up to them and contest their procedure.
View this video and judge for yourself.