123 LumpSum Supports Consumer Protection Legislation Passed in Vermont

123 Lumpsum is proud to announce:

Vermont Transfer Statute, HB 778, an act which allows consumers in Vermont to sell their structured settlement transfer rights was signed into Law by Governor Peter Shumlin and is now in effect.

Consumers in Vermont that currently receive structured settlement annuity payments and have a need to liquidate either a portion or all of the payments due to a changed circumstance now how the opportunity to do so with the added protection of the Vermont court system.

Some of the key consumer protection requirements listed in the new Statute are:

  • A disclosure statement which must be provided to the consumer 10 days before the transfer agreement is signed that discloses pertinent financial figures.
  • Attendance requirement of the consumer at the transfer hearing.
  • The Judge at the transfer hearing must make a finding that the transaction is in the “best interest of the [consumer] taking into account the welfare and support of the [consumer’s] dependents.
  • The Judge must also make a required finding that the [consumer] has been advised in writing to seek independent professional advice regarding the “financial advisability of the transfer and other financial options available to the payee, if any.”

Andrew Savysky, President of Structured Asset Funding, LLC, believes that the act “is an important piece of consumer protection legislation that balances consumer’s right to transfer their structured settlement payments with key consumer protections.”

Vermont’s Transfer Act differs from Model State Structured Settlement Protection Act (the “NASP Model Act”) that was first adopted in July, 2000 by the National Structured Settlements Trade Association (“NSSTA”) and the National Association of Settlement Purchasers (“NASP”). To date, 37 of the 48 states that have structured settlement transfer statutes are based in whole or in substantial part on the NASP Model act, and another 3 which predate the act are substantially similar to it.

Link to NASP Model Act