If you finally do decide to go with a structured settlement brokerage company this what you need to know about the law.

If you're in a lawsuit, some services "offer" you the ability to "sell" your structured settlements to them. In exchange, they provide you with a lump sum of cash in the event you need this type of financial resource.

Laws do protect consumers from brokerage companies that are unscrupulous. Most often, the settlement agreement also specifies a nonassignability clause. Basically, this is unenforceable, though.

Very often, purchase agreements require that the consumer agrees to a host of provisions that severely restricts your rights and actually may not be very fair. Oftentimes, though, to avoid lawsuits or something similar, contacts also require that the consumer relieve the purchasing party of any responsibility, and agree not to sue them.

Price terms as well are usually pretty unfair to the consumer. In fact, some sales have been shown to be completed with a 12% or 15.8% discount rate, but oftentimes, the rate is as high as 55, 65, or even 75%. The discount rate is calculated on what the purchase price is going to be as well, meaning fees such as brokerage fees that the seller of the contract agrees to. That means that the real cost and rate of the transaction is much lower than the company states it is once everything is said and done. The seller does also not have to be informed of the total cost of the transaction -- at least in terms that are understandable. And because some of the transfer agreements are so unfair, it would appear that there needs to be something put in place whereby consumers are protected from factoring companies that take unfair advantage of them. Cash for Structured Settlement - Page 3 >>>