Settlement Factoring and Settlement Creation

Ever know someone who inexplicably hated their younger brother.  As if somehow their very existence was a threat to them.  Maybe the younger sibling stole some of the love and attention they had been receiving to that point?

It is like that in the structured settlement family.  There are settlement brokers who partner with a client to structure a large settlement to pay over time via an annuity from an insurance company.

Then there are settlement factors who work with these same clients at some later date when they have encountered financial hardship and need access to a larger sum of money.  Many are trying to save their home, pay for important medical needs, improve their education, or take advantage of opportunities.

Sounds reasonable right…to give people access to their money.  So why does the creation side seem to dislike the factoring side of the structured settlement family so much?  Here are a few possibilities:

Settlement creationist take it personally when their work is replaced by factoring.

Settlement creationist thinks factors charge too much.

Settlement factors dominate the search engine results for “structured settlement

Settlement factors benefit from the work of structured settlement consultants

It occurs to me that there are a number of similarities between the two parties. Both settlement creationists and settlement factors:

Work for profit

Follow state and federal guidelines

Provide a service associated with structured settlement

Have associates with high integrity and others with less integrity…

I think the primary difference is that settlement broker, having been around longer, have developed more bureaucracy and perhaps some arrogance.  Settlement creationists have more certifications and accreditation and titles and assertions that they are bona fide

and papered and have the right to look down on factors for that reason.

I would rather we all just get along and find a way to work together in the best interests of the clients.  It seems unlikely that the two siblings will see eye to eye.

As a settlement factor I can live with that. At the end of the day, I strongly believe in the right of every consumer to choose for them self what is best when it comes to their money.  I believe in capitalism, that work and ingenuity should be rewarded.  If settlement creators want to hate settlement factors than so be it.  They are not the first to hate another group because of different beliefs.  And hate will always fight to justify its survival so I don’t expect creationists to see beyond their reasons and justifications.

It is worth noting though..that due to a lack of open communication and cooperation, some creationists in the pursuit of profit, have partnered with factors in secret.  I’m not sure that an undisclosed partnership best serves the clients.  Those creationist certainly represent capitalism. How many certifications do you need to make 2 commissions off of one client?

The reality is that we are both providing a service and  we don’t need to agree or like each other to do that.

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