Structured Settlements in Minnesota

Structured Settlements in Bloomington, Brooklyn Park, Burnsville, Coon Rapids, Duluth, Eagan, Minneapolis, Plymouth, Rochester, Saint Paul, Minnesota by structured settlement expert John Darer at 888-325-8640. Structured settlements expert John Darer reviews the latest structured settlements news and information and provides expert opinion and commentary, including settlement planning issues/ ideas for settlement management, incisive Structured Settlement Watchdog® commentary that may be helpful to lawyers, plaintiffs, claims adjusters, judges, the news media, sellers and buyers of structured settlement receivables,and interested others. The style is spicy, informative, irreverent and effective. The most prolific structured settlements blog, Now in 19th Year! Check back daily for something new. Read more about What is a Structured Settlement? What is Settlement Planning? Structured Settlements for Minors Structured Settlements for Seniors

Minnesota Structured Settlement Protection Laws to Grow Teeth if HF 3768 Passed by John Darer CLU ChFC MSSC CeFT CLTC

A bill has been introduced to add more teeth to the Minnesota Structured Settlement Protection Act, including unprecedented provisions that address conduct of structured settlement factoring companies' and their representatives, that have been observed in Minnesota and across the USA.

The new bill follows the Minneapolis Star Tribune's blistering multi-part expose of the structured settlement factoring industry and its impact on Minnesotans published in the Fall of 2021.

549.30 Sec 2 MN Stat 2020

Subd. 3a

Assignee means a person acquiring or proposing to acquire structured settlement payment rights from a transferor.

Sec 6 Subd. 19 "Transferee is a person acquiring or proposing to acquire structured settlement payment rights"

My Comment:

It would seem that there is yet another reason for there being no legitimacy to any company marketing structured settlement payment rights to Minnesota investors as annuities.

Sec 3 MN Stat 2020

Subd 5a

Adds effective equivalent annual interest rate requirement requiring a showing of the annualized rate of interest on the net advance, calculated by treating then transferred structured settlement payments as if they were installment payments on a loan, with each payment applied forts to accrued unpaid interest and then to principal.

My Comment: This is a standard requirement in many states' structured settlement structured settlement protection statutes.

What NEW things must a Minnesota Court consider in rendering it decision on a structured settlement transfer?

(c) based on the files, records, disclosures, and evidence presented at the hearing, the court has established that the financial terms of the proposed transfer are fair and reasonable, and the proposed transfer is in the best interests of the payee and the payee's dependents; after considering:

(1) the payee's age, legal knowledge, and apparent maturity level, and any other relevant factors and the stated purpose of the transfer.

(2) whether the payee has the capacity to fully understand the financial terms and implications of the transfer agreement.

(3) whether the payee is employed or employable.

(4) the ability of the payee to meet ongoing and known future living expenses, including medical expenses, and the current and future financial obligations of the payee and the payee's dependents, including child support and spousal maintenance.

(5) whether the payee completed previous transactions involving the payee's structured
settlement payments, and the timing, size, stated purpose, and actual use of the proceeds.

(6) the impact of the proposed transfer on current or future eligibility of the payee or
the payee's dependents for public benefits; and

(7) any other factors or facts the court determines are relevant and should be considered.

(d) the payee has or has not received independent professional advice regarding the legal, tax, and financial implications of the transfer.

(e) the transferee has given written notice of the transferee's name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of the notice with the court or responsible administrative authority; and

(f) that the transfer agreement provides that any disputes between the parties will be governed, interpreted, construed, and enforced in accordance with the laws of this state and that the domicile state of the payee is the proper place of venue to bring any cause of action in district court arising out of a breach of the agreement. The transfer agreement must also provide that the parties agree to the jurisdiction of any court of competent jurisdiction located in this state and that no predispute arbitration is required by the agreement.

Minnesota's Much Improved Structured Settlement Protection Act is Signed into Law

by Structured Settlement Watchdog

Both houses of the Minnesota legislature have approved important changes to the Minnesota Structured Settlement Protection Act as it hits the governor's desk. That the measure was approved unanimously in the Minnesota Senate and by an overwhelming 121-4 vote in the Minnesota House of Representatives shows just how impactful last Fall's scathing 4-part multipart report in the Minneapolis Star Tribune was in opening lawmakers' eyes to the fulminating abuse of Minnesota citizens.

The updated Minnesota SSPA has been signed by Minnesota Governor Tim Walz and will go into effect Aug. 1, 2022

I covered the proposed changes in my March 15, 2022 post Minnesota Structured Settlement Protection Laws to Grow Teeth if HF 3768 Passed

The proposed discount interest rate cap did not make the final bill as part of a compromise. While this may seem counterintuitive, an interest rate cap does not necessarily serve the interest of citizens of any state if the capital to provide liquidity (when necessary and approved) is not available and encourages predatory forum shopping to neighboring states, inveigling citizens in a fraud that will be held against them if they squeal " FOUL" later. Nasty stuff. Plenty of examples.

Minnesota SSPA | The Only State to Require an Outside Attorney to Advise Structured Settlement Transfer Judges

When the law goes into effect August 1, 2022, Minnesota will become the only state in the USA that among other things, will require the appointment of an outside attorney to advise Minnesota judges on whether to approve the sale/transfer of structured settlement payment rights for anyone that appears to suffer from mental or cognitive impairments. According to the Minneapolis Star Tribune, one in eight (structured settlement factoring) transactions involved a seller with documented mental health problems, including people institutionalized at the time they agreed to sell their payments or who struck deals shortly after they were released. Many of those sellers told the Star Tribune that they didn't understand what they were giving up in these transactions, including a car accident.

Monthly structured settlement payments may be the primary source of income for accident victims who are unable to work because of catastrophic, lifelong injuries

For aggressive structured settlement factoring companies, the "whales" are young adults with long term structured settlements for repeat sales for pennies on the dollar.

No other state routinely requires the appointment of an independent advisor to protect the interests of a seller claims the Star Tribune

Minnesota judges also will be able to appoint an independent advisor on any case if they want an outside opinion on the sale. Those advisors will be paid by the factoring companies, with costs capped at $2,000 per case.

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