Pat-Farber-Insight-on-Recycle-PaymentsThe National Structured Settlement Trade Association (NSSTA) recently issued a memo* discussing the selling of factored structured settlements payments (“recycled payment rights”) as investment vehicles or as a means to fund future settlement payments. In its memo, NSSTA pointed out the differences between structured settlements and recycled payment rights:

recycled_payment_rights_patrick_farber


Additional Reading & Information:
In June 2012 the NSSTA Board wrote to the membership to clarify that engaging in or promoting the marketing or distribution of payment rights previously acquired in a structured settlement factoring transaction are activities that are inconsistent with NSSTA’s mission. Recent developments have led to renewed questions about use of recycled payment rights as an investment vehicle and even as a means of funding future settlement payments. This memo recapitulates some of the reasons for this conclusion.

Read NSSTA Board Memo

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