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Structured Settlements are the ridiculous deals whereby I buy money that's owed to you for pennies on the dollar. Say you reached a settlement that pays you $50

Structured Settlements are the ridiculous deals whereby I buy money that's owed to you for pennies on the dollar. Say you reached a settlement that pays you $500/month for 30 years, that's $180k over 30 years. But if I offered you $20k, today, you might take it, if you had developmental problems.[1] Well, structured settlements need a judge's signature to go through, with the theory that the judge reviews the deal to make sure it's fair. Except this guy just went ahead and forged the signature. [1]: More on this here: https://www.washingtonpost.com/local/social-issues/how-companies-make-millions-off-lead-poisoned-poor-blacks/2015/08/25/7460c1de-0d8c-11e5-9726-49d6fa26a8c6_story.html https://www.washingtonpost.com/local/social-issues/how-compa...

zerocrates 11y ago
Technically the structured settlement is the original settlement, the $500/month. What this guy forged signatures on were transfer approvals. The charges against the paralegal are one thing, but probably more interesting is the fact that since none of these transfers had the judicial approval mandated by the law, none of them are actually valid. Not sure how easy it is to go back and undo or redo all those sales.
- mlissner 11y ago
  Right, flipped that in my mind. Thanks.
ojgeojgaew 11y ago
A structured settlement is a settlement that pays in some fashion other than a single lump sum (commonly an annuity). Many people choose to turn these types of long-lasting cash flows into cash today. As is so often the case, some annuity purchasers pay inarguably fair prices, and others don't. Some engage in fair dealing and some don't. milliner's accusations are akin to a claim that Wells Fargo is a predatory lender because payday loan shops exist.
- logicallee 11y ago
  sorry I didn't keep up entirely with this story, who is Milliner that you refer to in your last paragraph?
hsod 11y ago
"Developmental problems" is a funny way of describing people who understand the concept of present value.
- douche 11y ago
  The linked article (which was on the front-page some time ago) was about scammers going after people who had structured settlements that they had won due to suffering brain-damage and developmental disabilities from lead-poisoning. So literally true...
- mikeash 11y ago
  Accepting $20,000 for a cash stream worth $180,000 doesn't indicate much understanding of present value.
  - viraptor 11y ago
    It may make perfect sense. For example, if you're unemployed and receiving 20k right now would give you a chance to move + finish a course + get stable employment. That may be a much better solution than getting regular small payments that only give you a bit of breathing space every month on top of your benefits. But that's only assuming you can invest the 20k in a reasonable way.
    - mikeash 11y ago
      Even if it's totally worth it, surely you can get a better deal than effectively taking out a loan with a 100% interest rate, or whatever it works out to. Edit: 30%. Not quite 100%, but still really bad.
      - viraptor 11y ago
        Can you get a 30% APR loan if you have no job or savings and credit rating close to 0? Payday loans are 300%-1000%. People would go for the 30% loan you mention instead if they could.

zerocrates 11y ago

Technically the structured settlement is the original settlement, the $500/month. What this guy forged signatures on were transfer approvals. The charges against the paralegal are one thing, but probably more interesting is the fact that since none of these transfers had the judicial approval mandated by the law, none of them are actually valid. Not sure how easy it is to go back and undo or redo all those sales.

mlissner 11y ago
Right, flipped that in my mind. Thanks.

ojgeojgaew 11y ago

A structured settlement is a settlement that pays in some fashion other than a single lump sum (commonly an annuity). Many people choose to turn these types of long-lasting cash flows into cash today. As is so often the case, some annuity purchasers pay inarguably fair prices, and others don't. Some engage in fair dealing and some don't. milliner's accusations are akin to a claim that Wells Fargo is a predatory lender because payday loan shops exist.

logicallee 11y ago
sorry I didn't keep up entirely with this story, who is Milliner that you refer to in your last paragraph?

hsod 11y ago

"Developmental problems" is a funny way of describing people who understand the concept of present value.

douche 11y ago
The linked article (which was on the front-page some time ago) was about scammers going after people who had structured settlements that they had won due to suffering brain-damage and developmental disabilities from lead-poisoning. So literally true...
mikeash 11y ago
Accepting $20,000 for a cash stream worth $180,000 doesn't indicate much understanding of present value.
- viraptor 11y ago
  It may make perfect sense. For example, if you're unemployed and receiving 20k right now would give you a chance to move + finish a course + get stable employment. That may be a much better solution than getting regular small payments that only give you a bit of breathing space every month on top of your benefits. But that's only assuming you can invest the 20k in a reasonable way.
  - mikeash 11y ago
    Even if it's totally worth it, surely you can get a better deal than effectively taking out a loan with a 100% interest rate, or whatever it works out to. Edit: 30%. Not quite 100%, but still really bad.
    - viraptor 11y ago
      Can you get a 30% APR loan if you have no job or savings and credit rating close to 0? Payday loans are 300%-1000%. People would go for the 30% loan you mention instead if they could.