Monthly Archives: September 2013

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Must Have IPA , independent professional advisor; States

Must Have IPA , independent professional advisor ; States

Alaska Eff.
Date: 08/12/2003
Alaska Code § 09.60.200 & § .09.60.23 Disclosure of Key Terms to payee required. [ 1 ] Payee must receive independent professional advice regarding implications of the transfer
Delaware Eff.
Date: 07/26/2000
Delaware Code, title 10, § 6601 & § 6602 Payee must receive independent financial advice.
Florida Eff.
Date: 10/01/2001
Florida Statute § 626.99296 Payee must receive independent financial advice. Cannot factor structured settlements of claims for workers comp. benefits.
Maine Eff.
Date: 09/18/1999
Maine Rev. Statute Ann. Title 24A § 2241 to § 2246 Payee required to receive independent professional advice. Interested parties must consent to transfer if settlement documents bar assignment of payments
Maryland Eff.
Date: 10/01/2000
Maryland Courts and Judicial § 5-1101-5-1105 Payee must receive independent professional advice. Cannot factor structured settlements of claims for workers comp. benefits.
Massachusetts
Eff. Date:
01/12/2001
Massachusetts Ann. Laws chapter 231C § 2 Payee must receive independent professional advice.
Michigan Eff. Date: 01/14/2001 Michigan Comp. Laws § 691.1191 to § 691.1197 Payee must receive independent professional advice. Interested parties must consent to transfer if settlement documents bar assignment of payments. Discount/interest cannot exceed 25% per year. Cannot factor structured settlements of claims for workers comp. benefits.
Minnesota Eff.
Date: 08/01/1999
Minnesota Statute § 549.31 to § 549-34 Payee must receive independent professional advice. Cannot factor structured settlements of claims for workers comp. benefits.
North Carolina
Eff. Date: 10/01/1999
North Carolina General Statute § 44B-1-543.10 to § 44B-1-543.15 Payee must receive professional advice. Discount/interest rate cannot exceed prime + 5%; fees cannot exceed 2% of net amount payable to payee. Cannot factor structured settlements of claims for workers comp. benefits.
Ohio Eff.
Date: 10/27/2000
Ohio Rev. Code Ann. § 2323.58.1 to § 2323.58.7 Payee must receive professional advice. Cannot factor structured settlements of claims for workers comp. benefits.

 

This comes straight from the IRS, it is a compilation of excerpts from the various structured settlement protection acts, in regards to IPA’s.  In these state you are required to have a IPA, unlike other states were it is only required to be advised of your rights to have an IPA.

To speak to an Independent Professional Advisor today Call Us (855) 313 – 3327 Toll Free

Structured Settlement Attorney Eugene Ahtirski

Structured Settlement Transfer Experts

Structured Settlement Transfer Experts


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Andres Financial Group LLC. - Independent Professional Advisors (855)313-3327

Why are Judges Pushing Independent Professional Advice?

Why are Judges Pushing Independent Professional Advice?

AFG - Independent Professional Adviors

AFG – Independent Professional Adviors

Lately there has been an industry shift where the Judges who preside over structured settlement transfers, having been continuing cases in order to give the payee time to find qualified independent professional advice. But why?

The Structured Settlement Protection acts have been in effect for awhile now, so why do judges now find a need to refer to Independent Professional Advisors?

The judges have been seeing these transfer come through the courts on a regular basis and have noticed that there seems to be a pattern of question ability in the amounts. Not having the time or the resources to review each and every case thoroughly they have started using a clause in the structured settlement protection acts themselves, that allow for a third party review by a qualified Independent Professional Advisor. They have notice upon doing this the payee a lot of times comes back with a much different transfer price, when the deal is shopped to 3 other purchasers.

What an IPA originally started out was to just make sure the payee understood what he was selling,  how the math worked, and that they had their own best interests in mind. Now the Judges have seen these same IPA‘s as a tool to ensure that the payee s not being over charged, with out using court resources to do so.

Some states have gone so far as to make the purchasers of the structured settlement payments pay for the independent professional advisors, and most state have set a cap on the costs that can be charged for their service.

What does this mean to you the consumer? Well the judges have taken the liberty of protecting you one step further. There by taking their role as a consumer protector in the best interest to the next level.

Judges typically do not like these transfers and if they could and have attempted in the past to flat out deny any and all transfers that come across their bench. As we know the court system relies on revenue from filed cases to keep its doors open, so flat out denial is not beneficial to their revenue stream. As many factoring companies have realized that simply avoiding certain judges and sometimes counties is the only solution.

With the implementation and usage of Independent Professional Advisors now allows the judges to feel they are protecting the consumer and rule on these transfer with a clear conscience, and although the factoring companies may have to spend a little more money they are still able to acquire deals in counties they had previously thought they would have to avoid.

Structured Settlement Attorney Eugene Ahtirski