Interest drag occurs when you sell structured settlement payments and the transaction is dragged beyond its normal closing time by an unethical purchaser. Depending on the size of your transaction, you stand to lose tens of thousands of dollars in interest. This occurs because the further out in time the sale of your structured settlement payments is funded, the higher the present value of your future payments is worth. This means that you should have been offered much more cash based on a funding date that was actually much further out than originally anticipated. This difference is known as interest drag and can cost you a substantial amount of money. A few customer friendly structured settlement companies will actually re-fund you any loss due to the interest drag factor.
Unfortunately, defining what a "normal" funding time is can sometimes be complicated. There are many factors that go into how fast a structured settlement transaction is funded. Some factors include:
1. How quickly a court hearing date is obtained,
2. How quickly you provide all required documents,
3. How quickly the insurance company issues its Acknowledgment Letter confirming they have updated their records to reflect payments sold.
If the sale of your structured settlement payments is delayed beyond 90 days, you may want to discuss the delay with your company. Even though there are no guaranteed measures to take that will screen out all unscrupulous structured settlement buyers, there are common sense steps you can take to protect yourself. You can start by contacting the Better Business Bureau in the area where the factoring company you are considering using is located and find out about their complaint history. You can also perform the same inquiry with your state Attorney General's Office.
If you are looking to sell structured settlement payments and receive the MOST MONEY, please contact us directly toll free at 1-800-350-4523 or you may also complete the Free Quick Quote Form on our website and receive a Free No-Obligation Quote.
Unfortunately, defining what a "normal" funding time is can sometimes be complicated. There are many factors that go into how fast a structured settlement transaction is funded. Some factors include:
1. How quickly a court hearing date is obtained,
2. How quickly you provide all required documents,
3. How quickly the insurance company issues its Acknowledgment Letter confirming they have updated their records to reflect payments sold.
If the sale of your structured settlement payments is delayed beyond 90 days, you may want to discuss the delay with your company. Even though there are no guaranteed measures to take that will screen out all unscrupulous structured settlement buyers, there are common sense steps you can take to protect yourself. You can start by contacting the Better Business Bureau in the area where the factoring company you are considering using is located and find out about their complaint history. You can also perform the same inquiry with your state Attorney General's Office.
If you are looking to sell structured settlement payments and receive the MOST MONEY, please contact us directly toll free at 1-800-350-4523 or you may also complete the Free Quick Quote Form on our website and receive a Free No-Obligation Quote.
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