If you’re receiving structured settlement payments from a personal injury lawsuit, you may have wondered if it’s possible to get cash now in exchange for your future payments. The answer is yes – you can sell all or a portion of your structured settlement to a specialized structured settlement buyer in return for a lump sum payment.
Introduction to Structured Settlements
Structured settlements are a financial arrangement where a claimant agrees to receive periodic payments over time as part of a settlement agreement. These settlements are often used in personal injury, wrongful death, or workers’ compensation cases. While structured settlements offer a stable, long-term income stream, some recipients may find themselves in situations where they need immediate access to a larger sum of money. This is where structured settlement companies come into play.
What is a Structured Settlement Buying Company?
A structured settlement buying company, also known as a factoring company, is a business that specializes in purchasing structured settlement payments from individuals. These companies operate in the secondary market for structured settlements, which allows recipients to sell their future payments for a lump sum of cash.
When you sell your structured settlement, the buying company takes over the rights to your future payments in exchange for providing you with a one-time cash payout. The amount you receive will be less than the total value of your remaining payments, as the buyer applies a discount rate to account for the time value of money and their profit margin.
Top Structured Settlement Buyers
Now that you’ve come here in search of the best structured settlement buying company, we assume you really want to sell your future structured settlement payment. Here, we’ve enlisted some of the best companies of 2024 that you can sell your settlement annuity to:
Fairfield Funding
Phone: 855-296-0985
Fairfield Funding is a well-established structured settlement purchasing company known for its competitive rates and excellent customer service. They have a team of experienced professionals who guide clients through the selling process from start to finish.
Why Choose Fairfield Funding?
Other Leading Structured Settlement Buyers
In addition to Fairfield Funding, several other reputable companies purchase structured settlements. Some of the top buyers in the industry include:
Peachtree Financial Solutions
Phone: (800) 821-7773
Peachtree Financial Solutions, founded in 1996, is another experienced structured settlement buyer that offers a range of options for selling your payments. They are a member of NASP and have an A+ rating with the Better Business Bureau. The company was purchased by The JG Wentworth Company in 2011 and now works as a subsidiary.
Stone Street Capital
Phone: (301) 951-8900
Stone Street Capital has been purchasing structured settlements for over 30 years and has a strong reputation for customer satisfaction. They offer competitive rates and a transparent selling process.
Novation Settlement Solutions
Phone: (888) 797-3740
Novation Settlement Solutions is a newer entrant to the structured settlement buying market but has quickly established themselves as a reliable and customer-focused company. They offer free quotes and personalized service to help you navigate the selling process.
JG Wentworth
Phone: 855-688-9669
JG Wentworth also takes its place as one of the largest buyers of structured settlements in the United States. They have been operating since 1991 and have purchased over $7 billion worth of future payments from their clients. JG Wentworth offers competitive pricing as well as personalized attention to each client’s specific situation.
DRB Capital
Phone: (888) 981-8703
DRB Capital, founded in 2007, is another industry leader that focuses on personalized service and long-term client relationships. Headquartered in Delray Beach, FL, they offer a range of options for selling your structured settlement, including partial sales and deferred lump sum payments.
CBC Settlement Funding
Phone: 800-843-9020
CBC Settlement Funding is a well-regarded structured settlement buyer that has been in business since 2004. They are known for their competitive offers and commitment to customer service.
RSL Funding
Phone: (800) 543-6513
RSL Funding is a Texas-based structured settlement buyer that has been in business since 2003. They pride themselves on offering top dollar for structured settlement payments and providing excellent customer service.
Annuity.org
Phone: 833-686-0801
Annuity.org is a comprehensive online resource for information about structured settlements and annuities. In addition to educational content, they also connect consumers with reputable structured settlement buyers.
How To Choose The Best Structured Settlement Company
With so many options available in the market, it can be challenging to find the best structured settlement buyer. Here are some key factors to consider:
Experience and Reputation
Look for a company with a proven track record of successful transactions and satisfied customers. Check their website for client testimonials, and look for independent reviews on third-party sites like the Better Business Bureau.
Transparency and Communication
A reputable structured settlement company will be transparent about its process, fees, and any potential risks involved in selling your payments. They should communicate clearly and promptly, answering any questions you may have along the way.
Competitive Rates and Fees
While it’s important to get the best possible price for your structured settlement, be wary of companies that offer rates that seem too good to be true. Look for a company that offers competitive rates while also being transparent about any fees or charges involved in the transaction.
Compliance with Laws and Regulations
Ensure that the structured settlement company you choose is compliant with all relevant laws and regulations, such as the Structured Settlement Protection Act. This helps protect your rights and ensures that the transaction is fair and legal.
Fairfield Funding is an experienced structured settlement buyer with a solid reputation in the industry. We buy structured settlements, annuity payments, lottery winnings, and other future payment streams at fair market value.
We have helped many people access their cash when they need it most, providing them with financial freedom and flexibility. Contact us today to learn more about how we can help you sell your structured settlement or annuity payment stream.
If you want to know more about the structured settlement industry or related topics like class action lawsuits and future payments, check out our blog section: Fairfield Funding Blog Section.
Why Sell Your Structured Settlement Payments?
There are various reasons why someone might choose to sell their structured settlement payments:
Benefits of Selling to a Reputable Buyer
When selling a structured settlement, working with a reputable and experienced purchasing company is essential. A reliable buyer will:
The Process of Selling Your Structured Settlement
Companies that buy structured settlements follow a certain process. You can either sell your entire structured settlement amount or have options like “selling partial payments” or “selling portions of each payment.”
In either case, here’s what you’ll have to go through:
The first step in selling your structured settlement is to request a free quote from a purchasing company. You’ll need to provide some basic information about your settlement, such as the total amount, payment schedule, and insurance company. The purchasing company will use this information to calculate the present value of your future payments and determine how much they can offer you in a lump sum.
Once you receive a quote, take the time to review the offer carefully. Consider factors such as the total amount, any fees or charges, and the reputation of the purchasing company. If you accept the offer, you’ll sign a contract that outlines the terms of the sale, including the specific payments you’re selling and the lump sum you’ll receive.
In most cases, the sale of a structured settlement must be approved by a court. This is a legal requirement under the Structured Settlement Protection Act, which is designed to protect settlement recipients from unfair or exploitative practices. The purchasing company will typically handle the legal paperwork and court proceedings on your behalf.
Once the court approves the sale, the purchasing company will finalize the transaction with the insurance company that issues your structured settlement payments. You’ll then receive your lump sum, minus any agreed-upon fees or charges. The process can take several weeks to a few months, depending on the complexity of your case and the court’s schedule.
Signs of Fake Settlement Buyers
If you are looking to sell your structured settlement or annuity payments, it is important to choose a reputable buyer. Unfortunately, some fake settlement buyers out there may try to take advantage of you. Here are some signs that a settlement buyer may not be legitimate:
❌ No Physical Address
A legitimate structured settlement buyer will have a physical address where they conduct business. If the company only has a P.O. box or no address listed at all, this could be a red flag.
❌ Poor Online Reviews
Check online reviews for the company before doing business with them. If most of the reviews are negative and mention scams or unethical practices, it’s best to steer clear.
❌ Pushy Sales Tactics
A reputable structured settlement buyer will provide information about their services without pressuring you to make an immediate decision. Beware of companies that use high-pressure sales tactics and make promises that seem too good to be true.
❌ Lack of Transparency
The top and trustworthy structured settlement buyers will be transparent about their fees and processes from start to finish. If a company is vague about how it operates or refuses to answer questions about its fees upfront, this could indicate shady practices.
To avoid falling victim to fraudulent companies when selling your future payments on the secondary market, do your research beforehand by checking out resources like BBB.org, consulting with financial planners or lawyers familiar with these types of transactions, and getting quotes from several different potential buyers.
Understanding the Discount Rate
When you sell your structured settlement payments, the purchasing company will offer you a lump sum based on the present value of your future payments. This present value is calculated using a discount rate, which accounts for factors such as inflation, market conditions, and the time value of money.
In general, a lower discount rate will result in a higher lump sum offer, while a higher discount rate will result in a lower offer.
The settlement buyers then apply this discount rate to your future annuity payments to determine the annuity’s present value using the following formula:
PMT x ((1 – (1 / (1 + r) ^ -n)) / r)
PMT equals the dollar value of each annuity payment (payment stream), “r” represents the discount rate, and “n” stands for the number of periods or remaining payments.
This means that as interest rates rise or fall over time, so too will your offer from potential buyers. It’s important to shop around and compare offers from different companies before making any decisions about selling your structured settlement or annuity payments.
Court Fees and Other Costs
In addition to applying a discount rate based on expected future interest rates, buyers may also charge court fees and other costs associated with purchasing structured settlements or annuities. This means that even if two companies offer similar present values for your future payments based on their respective discount rates, one company may end up offering more overall due to lower additional fees.
Legal and Tax Considerations
The Structured Settlement Protection Act
The Structured Settlement Protection Act is a federal law regulating structured settlement payments’ sale. The act requires that a court approve any sale of structured settlement payments and that the sale must be in the best interest of the settlement recipient.
State Laws and Regulations
In addition to the federal Structured Settlement Protection Act, many states have their own laws and regulations governing the sale of structured settlement payments. These laws may vary from state to state, so it’s important to work with a purchasing company that is knowledgeable about the specific requirements in your area.
Tax Implications
In most cases, the sale of a structured settlement is a tax-neutral event, meaning that you won’t owe any additional taxes on the lump sum you receive. However, there may be exceptions depending on your specific circumstances, so it’s always a good idea to consult with a tax professional before selling your payments.
Make a Wise Decision!
Selling your structured settlement payments can be a big decision, but it can also provide much-needed financial relief in times of need. By working with a reputable structured settlement purchasing company and carefully considering your options, you can make an informed decision that best serves your long-term financial interests.
Remember to do your research, compare offers from multiple companies, and don’t hesitate to ask questions throughout the process. With the right approach and a trusted partner, selling your structured settlement can be a positive step toward achieving your financial goals.
Frequently Asked Questions
