You may have heard the commercials and seen the ads on TV, “We buy your structured settlement and give you cash” or “Need Money? Get cash today!” Financial companies advertising to get you to sell your structured settlement for a lump sum of cash.
To many this type of financial practice is a necessity and even a blessing. However, being it a financial issue there are a lot of pieces and players that come into play. The challenge a seller of a structured settlement might face is “Am I getting a fair price?” While reading into how selling a structured settlement works, surely you have stumbled upon articles saying how Selling Your Structured Settlements is a Scam!
A structured settlement IS NOT a scam. A structured settlement is an agreement between at least two parties in which the paying party promises to make future payments to another party. There are no exact rules as every structured settlement transaction is unique and no two are the same to make a good comparison.
Structured settlements can also be beneficial because they provide a source of income for the recipient well into the future. However, sometimes that payment is not enough for their current situation and they need to sell the entire structured settlement. But there are situations that structured settlement sellers should watch out for to avoid being “scammed”.
- If selling is the only option or even the right option, work with a reputable company that uses a fair and transparent process. Look at different options and compare offers online. Find a company that will fit your needs.
- Avoid individual private investor offering cash for your structured settlements.
- Don’t let any company or individual convince you to skip the legal aspect of selling a structured settlement. This is not only illegal, but you are increasing the chance to get scammed.
“There are legitimate companies and reasons to do so… but the best time to get a lump sum is at original judgment, imo. You are just losing out to a third party – just remember to really think about it – do you REALLY need the money right away, or would you prefer to have the security of a structured payment, knowing you will always have at least that minimum each month/year.” Says Andrij “Andrew” Harasewych
Simply verifying the credibility of any company, especially those with only an online presence, will be sufficient effort to protect you from majority of the scams present on the web. Even with laws and statutes in place, many structured settlements companies are able to push through unsavory deals.
Are structured settlements a scam?
A person that sells their structured settlement payment to a company for Cash is certain to be disappointed with the amount cash they receive when they compare it to the whole value. The seller may blame the structured settlement, instead of their financial situation (wild spending, sudden medical bills or poor economic choices).
The financial company that is doing the purchasing has the right to set their own prices. The structured settlement seller may later discover that they could have received a better deal elsewhere and start saying they have been scammed. Even though a judge must approve a structure settlement sales transaction and deem it to the sellers” best interest, the Judge is not responsible to see that you find the absolute best deal.
Approximately 50% of people who made the decision to sell their structured settlements, have openly expressed that they feel they could have obtained more money by simply comparing structured settlement offers from different financial institutions.Many argue that by selling their settlement they will lose a lot of value. This is actually not true.
Did you know inflation would do the most damage on your structured settlement if you do not allow it to be distributed into one or more lump-sum payments for better-returning investments? Experts suggest taking a settlement payout and placing it in a dependable asset, like real estate or business can make the value of your cash increase. When you receive your lump sum payment invest it wisely.
Final Conclusion – Is It A Scam?
In conclusion if you have a structured settlement and need money selling can be the best option. If you think about it’s better than a credit card loan with high rates. The key is to make sure you find a company that knows what they are doing and will take care of you. There are a lot of scam companies out there ready to rip you off, so only seek out the most reputable structured settlement firms to sell your structured settlement.