Last year, I had the opportunity to educate the South Carolina judiciary about structured settlements and structured settlement factoring. Together with renowned attorneys Susan Stauss from Cozen O’Connor and Sandy Jones from Faegre Drinker, I represented the National Structured Settlement Trade Association (NSSTA) and provided information about the history and benefits of structured settlements for injury victims and their families.
South Carolina’s Structured Settlement Protection Act & the Factoring Industry
Unfortunately, South Carolina’s current Structured Settlement Protection Act (SSPA) is outdated and does not adequately protect payees from questionable factoring deals, as a recent investigation by the McClatchy Media Network showed. The NSSTA has been instrumental in enacting stronger SSPAs in other states and is committed to protecting structured settlement recipients across the country.
South Carolina SSPA Improvements & Senate Bill 259
“The South Carolina legislature is working to improve protections for payees through Senate Bill 259. This bill allows the appointment of an Attorney Advisor to give independent advice to the court. It also requires the petition to be filed in the payee’s county of residence and mandates the payee’s attendance at the hearing. The bill also includes additional disclosures about prior factoring deals and the effective annual interest rate. Finally, the bill lists factors that the court must consider when deciding if a factoring deal is in the payee’s best interest.”
South Carolina SSPA Progress
I am encouraged by the increased judicial awareness of the SSPA and the progress being made to improve payee protections in South Carolina. It is my hope that these efforts will ensure the future well-being of structured settlement recipients in the state.
By John McCulloch | Structured Settlement Consultant, Vice Chairman
John holds an MBA from the University of Phoenix, a JD from Kaplan University, and a BA in Business from St. Martin’s College. In addition, he has completed graduate studies in Electronic Commerce at the University of San Diego and holds the following professional designations: CSSC, FLMI, WCLS, AIAA, ACS, and CMSS™, as well as an accounting certification from the Department of Defense. His formal insurance training includes casualty, property, fidelity and Workers’ Compensation claims, as well as Life and Health underwriting.
