The Settlement Alliance

The NEW Way Structured Settlement Factoring Companies Prey on Injured Claimants

The NEW Way Structured Settlement Factoring Companies Prey on Injured Claimants

Jun 15, 2017

Structured Settlement Factoring Companies

We’re all familiar with the television commercials imploring consumers to sell their structured settlements for immediate cash (you may even be singing one of the jingles in your head now—our apologies). Those companies—factoring companies—purchase structured settlement annuities in exchange for pennies on the dollar. In addition to print ads and the ever-present commercial jingles, it looks like some factoring companies are trying to reach consumers in a new way—through Craigslist.

Earlier this month, a Craiglist post went up in Dayton, Ohio with the following message:

Structured Settlement Cash (Dayton)


Anyone with a future cash flow due them,

with a strong payor that would like to get a lump-sum now,

call me or email me

What did this message leave out?

#1: The annuitant does not get paid the full value of the policy in cash: The factoring company will not pay the annuitant the full value of the policy. Instead, the annuitant will receive a deeply discounted lump sum of money, and the factoring company will begin collecting the annuity payments at their full value.

#2: Selling an annuity forfeits a source of financial security: A structured settlement is intended to provide a steady source of long-term income. If an annuitant sells their policy to a factoring company, they quickly cut away at their financial safety net.

What drives people to sell their structured settlements?

Many people have faced financial struggles at different points in their lives, especially if they’ve been involved in a personal injury, wrongful death, or workers’ compensation settlement. Medical bills can pile up, an individual’s earning capacity can be affected by an injury, not to mention the unforeseen events that pop up for all of us from time to time. The factoring companies know this, and they prey on those who need cash quickly. Unfortunately, the only one who wins is the factoring company.

Work with an experienced settlement planner

Before any financial decisions are made during settlement, an experienced settlement planner should help determine the claimant’s unique financial and medical needs, and educate the claimant on available settlement options. A structured settlement annuity may be a part of the settlement plan or it may not, depending on the claimant’s needs. Taking a comprehensive approach to settlement can be beneficial on a number of levels, including serving as a safeguard against the need to sell a structured settlement in the future.

Contact us to learn more about structured settlements

To learn more about structured settlements, contact our experienced settlement planning team today at 800-464-2500 or

We are proud to partner with the highest rated structured settlement providers in the industry:

  • American general Life Companies
  • Berkshire Hathaway Structured Settlements
  • MetLife
  • Mutual of Omaha
  • New York Life
  • Pacific Life
  • Prudential