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Brain Injury Awareness Month: Avoiding the Predatory Practice of Factoring.

Updated: Jul 30, 2021

A myth around Structured Settlements, fueled by the “I want my money now” commercials, is that plaintiffs can be denied their settlement funds. For those suffering from a Traumatic Brain Injury (TBI) this false imagery can lead to uncertainty and risk having those plaintiffs fall into the predatory practice of factoring their structured settlement payments.


Plaintiffs are not being deprived of their money. They are receiving scheduled payments pursuant to their individualized structured settlement plans. These “factoring” companies recognize the value of guaranteed payments from major highly rated life insurers and want to purchase these payments at a discounted value so they can sell them for a profit.


A structured settlement empowers plaintiffs to add confidence and certainty into their financial future. They accomplish this by setting up systematic payments throughout their lifetime in a way that enables them to cover the cost of ongoing expenses, such as durable medical equipment, medical bills, mortgage payments, food for their families, etc. while still being able to plan for major events, like purchasing a home, a wheelchair-accessible van or a college education for the TBI victim or their family.


The Creative Approach is a Balanced Approach.

If the entirety of the settlement funds have been structured, and there is no money set aside for an unexpected emergency, a potential problem might arise.

How can your clients protect themselves from falling into a position of having to sell their structured settlement future periodic payments?

Allow the structure to do what it was created to do: keep a roof over their head, food on the table, and meet all of the life care plan needs. A plaintiff should also take some of the settlement in cash and employ a qualified financial advisor to protect, invest, and professionally manage those funds. In this way, the structure protects the financial plan and the financial plan protects the structure. This holistic strategy builds a stronger portfolio, removing temptation of ever having to sell payments, should an unexpected emergency occur. Learn More >



Engage Your Own Settlement Expert Early.

The earlier a structured settlement specialist gets involved, the better. Decision-making for people with a TBI can be challenging. If plaintiffs with a Traumatic Brain Injury has never heard of a structured settlement, how are they expected to make a decision within minutes or even days as to what the best way is to settle their case. Worse, if a they are familiar with the “I want my money now” ads and believe structures are a means of depriving them of their money, they will reject the concept before learning of its many advantages.

Immediately upon Creative Capital’s involvement, our settlement experts begin working together to understand the unique needs of each plaintiff. CCI will provide a full presentation to the plaintiff where our experts will educate them on the powerful financial protection provided by a structured settlement and work together to craft a tailor-made payment stream.

Next, CCI’s legal department gets involved. We will draft (or review and revise) the various settlement documents and proposed orders to properly conclude the case. Creative Capital has also devised language for inclusion in the settlement documents and court orders making it difficult, if not impossible, for plaintiffs to be taken advantage of by factoring companies. In addition, every case handled by CCI has the highest level of transparency offered through our CORA affidavit, which protects plaintiffs from fraud and misrepresentation and states that Creative Capital will NEVER sell or provide any information about your client to factoring companies.


Creative Capital focuses not on the sale of a product, but on the entirety of your case from beginning to end. This approach to structured settlements sets CCI apart from the industry standard, and is one of the reasons we were voted the Nation’s Best Structured Settlement Provider. By enlisting the best of the best, you are able to guarantee that your clients' best interests are always put first. Plaintiffs can create their future with confidence for a lifetime of financial stability and we can all ignore those people screaming from windows.


Let Your Team at Creative Capital Demonstrate the Effectiveness of the Creative Approach in these Complex Cases. CLICK to Contact Us Today or Call: 800-327-9224



ABOUT CREATIVE CAPITAL INC.

Creative Capital Inc., established in 1980 and a founder of our industry, has been voted the Best Structured Settlement Provider both regionally (NY, NJ & CT) and nationally, recognizing our accomplishments and leadership over the course of our forty years in business. Our skilled team partners with clients to provide innovative solutions designed to achieve better settlements. Everything we do is driven by a strict code of Ethics along with the Expertise and Experience of an industry leader.


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