Whether you win won in a lawsuit, insurance claim, or lottery winnings structured settlements and annuities provide a long-term, steady flow of funds. If you need cash for your settlement now there are companies that deal exclusively with letting you access your settlement cash immediately. They buy your long-term annuity and give you cash for your settlement up front.
Amidst swirling debate on the industry of getting cash for annuity payments legislators in Maryland took action and passed new reform regulations earlier this month. Many saw this as a step in the right direction to protect consumers from possible predatory practices used on people that need extra cash. There are currently only three states that do not have Structured Settlement Protection Acts. Not everyone believes this will be a good thing for all parties involved though, according to the Baltimore Sun.
Earl S. Nesbitt is the executive vice president and general counsel of the National Association of Settlement Purchasers. He recently wrote the piece for the Baltimore Sun in which he argues against the recent reforms.
“In an effort to address the conduct of a single company that is not representative of the greater settlement purchasers industry (nor a member of the industry trade association), Maryland’s Judicial Review Committee has approved rules that, by prolonging the court evaluation process and requiring the public disclosure of the seller’s private information, could harm the very people the committee wishes to protect,” Nesbitt wrote.
It’s Nesbitt’s belief that burdensome regulations and prolonged court proceedings will have adverse effects on the very people they’re trying to help. If you need cash for your settlement, chances are you need it sooner rather than later. He argues this will not only slow down the entire process, but also decrease the amount companies will be able to pay as they’ll be spending more time and money in court.
For one reason or another people fall on hard times every day. Less than one in four Americans have enough money in their savings to cover six months of expenses and 62% don’t have the means to cover unexpected expenses. It’s important for these people to have a way to access the money they’re entitled to immediately should they need to. Safeguards and regulations are essential, but they need to be done smarter not just more of them.