Structured settlement scams

Structured settlement scams that are sucking the blood of plaintiffs:

The structured settlement scam is a scam that involves providing least present value than the usual, for your original settlement amount. The unscrupulous structured settlement scammers are the vultures that prey on people, who are innocent, uninformed and desperate. Their ultimate aim is to make the maximum benefit out of the hard earned money of the plaintiff and these criminals are cold blooded to go to any extent for that. It is hard to figure out these sham operators as they are usually secured under the protection of big shots but with the little knowledge of how does the structured settlement operates and what are the basic rights of plaintiffs, you can at least keep distance from them.

Structured settlement- A voluntary agreement:

A structured settlement is an agreement usually made by two parties or more, stating that the paying party assures to make future periodic payments to the receiving party (Plaintiffs), in case of any injuries or an unexpected fatal. The terms and conditions of the structured settlements should be clearly mentioned in that agreement and the brokers, involving in this business should be a proper licensee and should exude inadequate knowledge in placing a legitimate structured settlement annuity. In case the receiver is minor, he or she should be represented by a lawyer, along with the agreement for the approval of settlements. This is how the lawsuit for structured settlement has been devised but with the intervention of the predators, who run con companies that buy and sell settlements has made this legal business sound hell to most.

They defraud you with high discount rates:

When selling the existing structured settlement payment rights to a company for "cash now", the seller will be imposed with a normal discount rate of 12%. But some fraud companies usually termed as "Factoring" companies will impose a high discount percentage on the cash, leaving the seller receive a minimum amount than he owed. For instance, if you are selling the structured payment rights with a future payment value of $ 100, 000 a year, for 12% discount, then you must be receiving $ 88,000 but most fraudulent companies offer you only $ 70, 000, putting a discount rate of 30%, which is completely against the industry standard. In case, you are selling only the portion of your structured payments, the con companies force you to sell the remaining part also without giving you a chance of switching to another company that makes a fair deal.

The recent postings of the victims of structured settlement scams:

Michele Frankston has been highly ripped off by his purchasing company with a huge interest rate that made him lose several dollars.

Another victim, named Brenda has posted the below message, which tells the hardship that she has undergone with a con company that mined her money and peace.

Identities of the structured settlement scams:

• Missing of transparency in the business deal
• High discount rate percentage
• Lack of clarity in the settlement documentation
• Lack of credentials
• Bankruptcy

Ways to cut the structured settlement baddies into size:

Check the license of the settlement brokers:

A legitimate structured settlement broker must be the member of the state insurance department and he should be licensed to work as a life insurance agent. Ask for the license, before making a deal, if he hesitates to show the license, then it clearly reflects that he is suspicious. In some cases, these criminals might also have fake licenses, so it is better to check your state's insurance website, whether he is a member or not. This way you are much protected from these dangerous beasts, who are involved in structured settlement scams.

The United States department of justice has brought few links to public notice that helps anyone choose the legitimate structured settlement brokers.

Look for an efficient life insurance agent:

As per the United States treasury department, an insurance agent should have undergone an anti- money laundering training before he takes up his career and should be updated with the latest structured settlement courses offered by LIMRA (Life insurance Marketing and Research Association). Choosing a well efficient agent, who has good domain knowledge, will save you from future troubles.

Never fall into the pits dug by unfair lawyers:

It is the human nature to believe the persons, who adorn respectable white collar positions but the fact is that some deserve it and some not. Many money minded lawyers, misuse the lawsuits to favor them and fill their pockets as most believe lawyers than brokers for their legal settlements. Scott Rothstein is one such lawyer of south Florida, who is now paying for his involvement in structure settlement scams. He has misguided his client with pre- settlement funding, where the client is promised to receive a cash advance on a case, which is completely out of the writs of structured settlements. There are some lawyers, who mischaracterize the nature of the legal settlements and make either the company or the plaintiff to lose huge amount.

Search for better deals:

The company that purchases your settlement rights has the right to set their own price. It is where; the scammers come in and rip you off to the core. So it is much recommended to do a research and find the legitimate one that offers a favorable bid than breaking your head, after choosing a wrong deal that steals your money and time. Once you find your suitable company, never let it to skip any legal aspects of selling a structured settlement as following the proper hierarchy of the established rules is the easiest way that reduces the chance of getting scammed.

Keep yourself updated:

Instead of seeking the help of third party, it is good that you put your own best foot forward. Visit the National structured settlement trade association website to end up with fair dealing companies. Use the online structured settlement calculators and check your future payment value, before selling your settlement rights to any company. Be skeptical; never believe anything blindly without doing any research.

If you suspect that you have scammed, post your complaint in www.justice.gov , an official portal of the justice department of United States or lodge a complaint in www.bbb.org, the web portal of Better Business Bureau, a nonprofit organization in United States. Only self defense works great for structured settlement scams than any other measures, so remain wary of these scammers to protect you and the value of your money.