NSSTA Provides Insight on “Recycled Payment Rights”

The National Structured Settlement Trade Association (NSSTA) recently issued a memo* discussing the merchandising of factored structured settlements payments (“recycled payment rights”) as investment vehicles or as a method to fund future settlement payments. In its note, NSSTA identified the variations between structured settlements and recycled payment rights:

Additional Reading & Information:

In June 2012 the NSSTA Board wrote to the membership to clarify that participating in or promoting the selling or distribution of payment rights antecedently noninheritable  in a very structured settlement resolution dealing square measure activities that square measure inconsistent with NSSTA’s mission. Recent developments have semiconductor diode to revived questions about use of recycled payment rights as associate degree investment vehicle and as a method of funding future settlement payments. This note recapitulates a number of the explanations for this conclusion.