Upfront and Honest by Claudia Green
My blog for today highlights a situation that happens to all factoring companies at some point, whether they choose to admit it or not, and in fact, very recently happened to Eagle Settlements. An annuitant decided to cancel their deal with us on the very day the case was due in court. Our lawyer informed us that the annuitant concerned had canceled the deal and decided that she did not wish to pursue selling her structured settlement for the time being. Choice and free will are both aspects of life that I have highlighted in a previous blog and I fully believe and respect individuals for making their own decision. Where I have an issue, however, is when an individual knowingly makes a choice about something that directly affects another in a negative way. There are, therefore, a couple of things that I take umbrage with in respect of our recent experience of an annuitant canceling her structured settlement sale. Firstly, why leave it until the day the case is being heard in court to cancel and secondly, why not tell the factoring company yourself, instead of leaving a third party to do so. Let me address the first point. When someone chooses to sell their structured settlement payments, there is a set procedure that all factoring companies must follow in order for the sale to be approved in court. This procedure cannot be hastened, no matter what some other companies may tell you, and at a minimum, it will generally take between six and eight weeks before the case is heard in court. This means that an annuitant has time to discuss any concerns they may have with the factoring company they are selling their payments through. To leave things until the very last minute is just not necessary. As you can imagine, there is a lot of work that goes on "behind the scenes" during this period of time, and the factoring company may be utilizing both internal and external resources that have a cost
implication. Just because an annuitant cancels, it does not mean that the factoring company is no longer liable for the costs incurred. The second point I raise is more of a moral one. I take the view of "treat others as you would expect to be treated". If I were an annuitant and wanted to cancel my deal, then I would like to think that I would tell the factoring company concerned myself. In the recent case that Eagle Settlements had, being told by our lawyer was frustrating to say the very least. Putting myself in the annuitant's shoes, I can however understand that she may just have felt very embarrassed to tell us. If this is the case, then there is absolutely no need to feel this way. Everyone has the right to make a decision and subsequently change their mind, if something is not right for them, and the last thing I would want is for an annuitant to go ahead with selling their structured settlement payments if they do not want or need to. As I always tell people, once you have sold them, you cannot get them back!