This week, the Consumer Financial Protection Bureau (CFPB) published a statement in an effort to educate consumers on factoring transactions and the potential financial harm that injury victims and their families face when entering into these types of agreements.
“Educating consumers about factoring is essential,” said Eric Vaughn, Executive Director of NSSTA. “Structured settlements provide financial security and stability to injury victims and their families by providing periodic payments that cover medical expenses, replace lost income and provide for a family’s financial needs. Claimants should be aware of the possible damage that can be done to their financial future by selling payments in a factoring transaction.”
“Trading guaranteed periodic payments for immediate cash can be risky,” said Sally Greenberg, Executive Director of the National Consumers League. “Factoring companies that take advantage of injury victims and target consumers with disabilities often undermine the financial security established at the time of settlement. We are pleased that the CFPB is bringing awareness to this issue.”
Structured settlement consultants work with plaintiff attorneys, defense counsel, mediators and the life insurance industry to help seriously injured victims meet the challenges of paying for a lifetime of living expenses, health care costs and medical bills by structuring their tort claim settlement. A structured settlement provides economic security that allows injury victims to live their lives with dignity and respect.
NSSTA recently partnered with the AAPD and the National Consumers League to strengthen Structured Settlement Protection Acts that protect claimants and empower state courts to prevent factoring companies from preying on injured people. The structured settlements industry continues to fight to protect the rights of injured people and encourage additional State Legislatures to take action to strengthen their State Structured Settlement Protection Act (SSPA) statutes.
To view the full policy statement from the CFPB, visit https://www.consumerfinance.gov/askcfpb/2025/structured-settlement-payments.html.
About NSSTA: Since 1985, the National Structured Settlements Trade Association (NSSTA) has been the leading voice of the structured settlement industry, representing more than 1,200 professional structured settlement consultants, life insurance industry leaders, property casualty company claims officials and lawyers from across the United States and Canada. These members work with injury victims and their families to find solutions that meet the client’s needs. For more information, please visit www.nssta.com.