Your Right to Cancel the Transfer

Your Right to Cancel the Transfer

Block 12.1 Article 2.3 Transfers of Structured Settlement Payment Rights

10136(c)(13) Your Right to Cancel the Transfer Agreement is Stated in the Disclosure Statement


This article and the last thirteen (13) articles have been about what is required by law to be in the Disclosure Statement; that is what 10136(c) et al is all about.


10136(c)(13), is the last subdivision of (c), (13) being the last of 13 out of 13 subdivisions of subsection (c).


10136(c)(13) tells TRANSFER COMPANY to make a statement in the Disclosure Statement to the consumer in “larger print”, that they can cancel their transfer agreement at any time, in writing, without a special form, as long as IT IS IN WRITING:


(13) states, ” The following statement printed in 14-point type, circumscribed by a box with a bold border, and set forth immediately above or adjacent to the space reserved for the payee’s signature: “You have the right to cancel this agreement without any cost or obligation until the date the court approves this agreement. You will receive notice of the court hearing date when approval may occur. You must cancel in writing and send your cancellation to [insert transferee’s name and address].”

What is so special about these instructions is that the law directs the transfer

company to put your right to cancel into…


Can you believe it?  The law directs the transfer company the way something needs to look?  Not just what the law needs to mean, but also what it needs to look like when the transfer is company is trying to explain itself to you.


Now THAT is consumer protection in action!  You’ll see this kind of “print” in your Disclosure Statement.

Structured Settlement Attorney


Treated Unfairly?

Block 11.4 Article 2.3 Transfers of Structured Settlement Payment Rights

10136(c)(12) Treated Unfairly?  Your District Attorney is Here to Help.


And the Attorney General too.  According to 10136(c)(12), the transfer company has to put a statement in the Disclosure Statement to the consumer stating, if you feel you are being ripped off, treated unfairly, or that you have been railroaded into doing something you don’t want to do, call your District Attorney immediately!


Here’s why:  according to California Insurance Code, any transfer company that successfully or NOT, attempts to transfer structured settlement payment rights in court, MUST file with the Attorney General of California a copy of any final court order approving or denying the transfer of structured settlement payment rights.


The Attorney General will hear from the transfer company anyway.  The Attorney General doesn’t want to hear from the consumer; that would mean something is terribly wrong.


10136(c)(12) The following statement: “If you believe you were treated unfairly or were misled as to the nature of the obligations you assumed upon entering into this agreement, you should report those circumstances to your local district attorney or the office of the Attorney General.”


So, if you feel, at any point in the game, that you are being treated unfairly, you get the Attorney Generals attention, and whether or not you meant to be a whistler blower, you’ve blown a loud whistle.


Your independent professional adviser can do this with you, or for you too.  Hopefully, if you have an independent professional adviser or a structured settlement advisor you can avoid this entire situation and save time, money, and irritation.

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AFG - Independent Professional Adviors

AFG – Independent Professional Adviors

Challenges Posed by Court Procedures for Structured Settlement Transfers

By AFG Newswire October 4th 2014 11:56 a.m.


Challenges Posed by Court Procedures for Structured Settlement Transfers


The transfer company has the responsibility of filing, preparing, and presenting the case in court, but you have the responsibility of gathering evidence and answering questions in court.  In recognition of the challenges this can present, the Structured Settlement Protection Act has given you the opportunity to have an attorney at no expense to you for your guidance.


Usually there are costs to petitioners of hiring a structured settlement attorney to represent them in their structured settlement transfers, but not in this situation, where the Structured Settlement Protection Act has covered the cost for you, up to $1,500.


There are standards of evidence which can be confusing, even to the average attorney, and that’s why you don’t want an average attorney.  You need a structured settlement attorney that specializes in the field of structured settlement law.


The typical person wanting to transfer their structured settlement payment rights usually has no court experience, or of little to speak.


It doesn’t matter what age, race and ethnicity, gender, educational background, income, or the type of situation your structured settlement tranfers is:  lack of court experience means you need help with understanding court procedures, what EXACTLY the court looks for with evidence, what the courts don’t need, what irritates the courts, what would delay the transfer, what can expedite the transfer, the list goes on.


California courts want you to have a fair and effective court experience during structured settlement transfers.  When you walk in the courtroom represented, the judge knows you did everything in your power to have a fair and effective judicial experience.

Structured Settlement Attorney Eugene Ahtirski 

Structured Settlement Protection Act Experts

Structured Settlement Protection Act Experts

What Constitutes a “Dependent” During a Structured Settlement Transfer

What Constitutes a “Dependent” During a Structured Settlement Transfer in Court, and Why is it so Important?


California‘s Structured Settlement Protection Act, or the California Insurance Code Section 10134-10139.5 has nine clauses that mention “dependents”.  Let’s walk through all nine, in the order as listed in the actual code.


Number 1, Definition.  Number 2, Disclosure Notice.  Numbers 3 and 4, Welfare of Dependents.  Number 5 goes on to talk about the totality of your circumstances/mental capacity of the payee; it was a massive sentence, shortened for the scope of this article.


Number 6 talks about child support and maintenance, regarding dependents, and having other sources of income.  Number 7, facing hardship.  Number 8, Other Factors, demographics.  Number 9, Separate listing/age.


We really recommend seeking independent professional advice, especially if you have dependents.


  1. Definition of Dependents

10134(b)  ” “Dependents” include the payee’s (person selling their structured settlement payment rights) spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including alimony.”


Remember, “other persons” can be businesses too.


  1. “Dependents” in the Disclosure Notice

10136(b)  “You should get independent professional advice about whether selling your structured settlement payments is a good idea for you and for your dependents.


  1. “Dependents ” in the “What Makes the Transfer Void” Clause

10137(a)  “The transfer of the structured settlement payment rights is fair and reasonable and in the best interest of the payee, taking into account the welfare and support of his or her dependents”.


  1. “Dependents” in the “What Effectuates the Transfer to GET COURT APPROVAL” Clause

10139.5(a)(1) “The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents.



  1. “Dependents” for Court Approval
    10139.5(a)(6)(b) “When determining whether the proposed transfer should be approved, including whether the transfer is fair, reasonable, and in the payee’s best interest, taking into account the welfare and support of the payee’s dependents, …..”


  1. “Dependents” regarding Child Support and Maintenance-Full Disclosure for Court Consideration

10139.5(a)(6)(b)(8)  “Whether the payee has other means of income or support, aside from the structured settlement payments that are the subject of the proposed transfer sufficient to meet the payee’s future financial obligations for maintenance and support of the payee’s dependents, specifically including, but not limited to, the payee’s child support obligations, if any.  The payee shall disclose to the transferee and the court his or her court-ordered child support of maintenance obligations for the court’s consideration.”


  1. “Dependents” in the “Hardship” clause

10139.5(a)(6)(b)(13) “Whether the payee, or his or her family or dependents, are in or facing a hardship situation.


  1. “Dependents” in the “Other Factors” “Demographics” clause

10139.5(a)(6)(b)(15)(c)(3) “The names, ages, and place or places of residence of the payee’s minor children or other dependents, if any.


  1. “Dependents” Separate Listing/Age

10139.5(a)(6)(b)(15)(c)(6)(f)(2)(C) A listing of each of the payee’s dependents, together with each dependent’s age


The independent professional adviser can help coach you along and prepare you throughout the entire process, with or without dependents.

Structured Settlement Attorney

Structured Settlement Transfer Granted San Bernardino County

By AFG Newswire

August 4, 2014


Structured Settlement Transfer Granted San Bernardino County

Structured Settlement Transfer “Granted”:  a San Bernardino County Resident, a New York Transfer Company, and a Sacramento Law Firm-With No IPA.


At the end of July, a San Bernardino County resident transferred his payment rights successfully to a bank based in New York, represented by attorneys based in Sacramento.   And no independent professional advice to be found for the resident.


This is legal.  The transferee, the structured settlement obligor, or the annuity issuer, must be from the county of original jurisdiction, in this case, it was San Bernardino County (10139.5(f)(1)).


The transfer company and their attorneys do not have to be from the county of original jurisdiction.  If there is another party buying the payment stream as a recycled annuity, they do not have to be from the county of original jurisdiction as well.


The sad part here, the resident had no independent professional adviser.  We have no idea what price he got for his dollar.  Rates differ with different companies, especially “out-of-state” companies.


The Importance of an Independent Professional Adviser

The growth of advancing laws creates a larger arena of events that needs consideration.  The importance of independent professional advice becomes greater.


The independent professional adviser is an accomplished thinker trained in performing due diligence on your behalf.  In this particular case, the resident dealt with a well established law firm who’s practice areas are “workers compensation”, “personal injury”, “bankruptcy”, “labor law”, “real estate”, “business law”, “social security”, and they command a hefty price for their services.


Then there is the bank in New York.  Did the resident really have bargaining power with a bank in New York that is a “full service, federally chartered savings bank serving professional service firms, law professionals, etc.”?


In addition, who was the third party mystery person?  Did they buy the payment stream?  Did this resident even know that angle of this whole deal?


It’s not that the resident or the “transferee” or the “payee” needed to understand the whole process, it is protection the resident needed.  The resident had no idea what options were out there, the resident was unrepresented; and it didn’t have to be that way.  California law provides $1,500 for an independent professional adviser.

Structured Settlement Transfer Granted San Bernardino County

Structured Settlement Attorney