State Structured Settlement Consumer Protection Laws
Most states have certain protections in place for those selling structured settlement payments to a third party. All state laws regarding such transfers differ slightly. In general, however, all state regulations require:
- Full disclosure from structured settlement buyers: Funding companies are obligated to provide a disclosure that includes all of the terms of the transaction in a very clear and concise manner for the protection of the seller.
- A “cooling off period:” The seller must be allowed a period of time during which s/he can reconsider the decision to sell structured settlement payments
- Court approval: all sales or transfers of annuities or structured settlement payments must have the approval of a judge. This approval will depend largely upon the seller’s unique financial situation and whether or not it is determined that such a sale is in the seller’s best interests.
You can learn more about your state’s structured settlement protection laws below: