Spitzer Wins Concessions on Charged Rates and Important Consumer Disclosures
Attorney General Spitzer today announced an agreement with a financial services company that will protect consumers who seek to cash in their settlement awards.
"The sale of structured settlements is becoming a popular mechanism for consumers to get immediate access to cash without taking out a loan," Spitzer said. "As with borrowing, however, it is imperative that limits be placed on the rates charged and that certain important information be provided to consumers in order that they make informed choices."
After an investigation by Spitzer's office, concerns were raised about certain aspects of the purchase of structured settlements provided by the Singer Asset Finance Company, LLC, of Boca Raton, Florida.
Singer purchases structured settlements by paying an up-front lump sum payment to a consumer in exchange for the consumer's fixed compensation payments from a personal injury judgment or settlement. It is estimated that Singer has entered into contracts with approximately 300 consumers throughout New York State for the rights to their settlement monies.
In recent months, Spitzer's office has become increasingly concerned about the growing number of companies that target consumers with limited legal and financial knowledge with offers of quick cash in return for rights to their injury-related award.