Stone Street Capital is one of many firms that specialize in the purchasing of structured settlements. They frequently advertise on late night television when ad spots are cheaper and financially troubled people are still awake due to stress.
There are few protections for people who unwittingly sell their stake in structured settlements for an upfront payment. However, a Rhode Island state law passed in 2001 requires judges to determine if such transactions are in the best interests of the payee.
That duty was exercised by Superior Court Judge Netti C. Vogel, who refused to sign off on a proposed sale of a structured settlement to Stone Street Capital. Vogel, who calls such companies “vultures,” responded “I think it’s absolutely despicable.”
In this case, Stone Street Capital proposed purchasing the structured settlement from a Warwick resident for $7,597. With a present value of $19,082, the client Diona McNeil would give up over 60% to Stone Street Capital for the right to receive an upfront payment.
This is not an isolated case either. The sale of structured settlements is a $6 billion a year business. J.G. Wentworth is the largest of such companies engaged in structured settlement purchases.
People who have been awarded structured settlements should consider what their future needs are, since that is the purpose of such settlements. Cashing in a settlement now may seem appealing, but the costs can be huge.
The amount of money that people give up just to get more cash now is staggering. Such deals are rarely a good idea, and they almost always are in the bests interests of the company purchasing the structured settlement and not the actual recipient.
Tags: structured settlement sale disallowed
Hi, I can’t believe how HOT the whole topic of Structured Settlements has become over this past year.
Will it even end?
A fool and his money are soon separated. Why on earth would a reasonable person throw away such financial security for such a paltry sum?
I recently read about a woman who won several thousand dollars from a lottery ticket, but sold it for less than half its value so that she could have the cash that day.
As long as there are fools with money, there will be those willing to take advantage of them.