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If you’re exploring options for selling your structured settlement—sometimes known as structured settlement factoring or purchasing companies—here’s a clear breakdown to help you navigate smartly:
What Are Structured Settlement Purchasing Companies?
These are entities (often called factoring companies) that buy your future structured settlement payments in exchange for a lump sum now. However, they purchase your rights at a discounted rate—typically between 9% and 18%—to account for risk, time value, and potential resale profit.(Structured Settlements, Annuity.org)
Because these transactions require court approval under the Structured Settlement Protection Act (SSPA), reputable companies filter for deals likely to pass judicial scrutiny.(Structured Settlements, Annuity.org)
Key risks and red flags to be aware of:
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Aggressive sales tactics or promises of “cash in two weeks.”
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Claims that your settlement can be sold via arbitration (not true—you need a judge’s approval).
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Pushy offers or unsolicited contracts.(Structured Settlements)
The Consumer Financial Protection Bureau (CFPB) also warns that these deals may leave people significantly worse off and recommends seeking legal or financial guidance before proceeding.(Wikipedia)
Major and Reputable Structured Settlement Purchasing Companies
Here are several well-known firms that buyers frequently consider, with a brief snapshot of each:
1. J.G. Wentworth
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One of the most recognizable names, famous for its "It's my money and I need it now!" jingle.(Wikipedia, beststructuredsettlements.com)
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Offers structured settlement, annuities, and lottery payment purchases.
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Large reputation, subsidizing consumer familiarity.(Wikipedia, MAC Injury Law)
2. Peachtree Financial Solutions
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Acquired by J.G. Wentworth.
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Serves structured settlements, annuities, and lottery winnings.(Wikipedia, beststructuredsettlements.com)
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Often praised for personalized service and expertise.(bighow.com)
3. Stone Street Capital
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Founded in 1989, headquartered in Bethesda, Maryland.
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Holds an A+ Better Business Bureau (BBB) rating.(OK! Magazine, Sophisticated Investor)
4. DRB Capital
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Offers fast, streamlined service and solid customer support.
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Known for competitive offers and efficient processing.(OK! Magazine, beststructuredsettlements.com, Sophisticated Investor)
5. Fairfield Funding
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Based in Atlanta, well-reviewed and trusted.(OK! Magazine, bighow.com, consumervoice.org)
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Offers quick payouts (sometimes within five days), covers court and transaction fees.(bighow.com)
6. RSL Funding
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Smaller Houston-based company.
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Offers personalized attention and potentially better rates.(Sophisticated Investor, beststructuredsettlements.com)
7. Novation Settlement Solutions
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Active since 2000.
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Says they've purchased over $1.5 billion in structured settlements and similar assets.(Sophisticated Investor)
8. CBC Settlement Funding / Annuity Transfers, Ltd.
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Known for transparent processes and helpful customer experiences.(bighow.com, ConsumerAffairs, MAC Injury Law)
9. USClaims
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Ranked highly by users (5.0) on ConsumerAffairs.
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Offers pre-settlement and settlement purchasing across many states.(ConsumerAffairs)
Tips for Choosing the Right Buyer
| Tip | Why It Matters |
|---|---|
| Check licensing and BBB rating | Ensures legitimacy and operational trustworthiness.(Structured Settlements, Annuity.org) |
| Get multiple quotes | Enables comparison of discount rates and fees—some firms might offer better net value.(MAC Injury Law, bighow.com, ConsumerAffairs) |
| Understand all fees clearly | Transparent deals protect you from unexpected deductions.(bighow.com, MAC Injury Law) |
| Beware of overly aggressive or unrealistic promises | Red flags like quick-cash pledges often indicate predatory practices.(Structured Settlements, Wikipedia) |
| Consult a financial advisor or attorney | Especially important for legal approval and long-term financial planning.(Wikipedia, MAC Injury Law) |
| Compare speed vs. value | Smaller companies (e.g., Fairfield, RSL) may pay faster or more personalized service, while larger firms may offer stability and recognition.(bighow.com, consumervoice.org, beststructuredsettlements.com) |
Community Perspective
Some voices from Reddit highlight common pitfalls and user concerns:
“Instead of, say, $1,000/month for 10 years… a company offers to give you a single lump sum of $80,000 now… Note that in this example an extra $40,000 goes to the company… You get $80,000 now, the company gets $120,000... You’re certainly not going to come out ahead.”(Reddit)
Another shares concerns about aggressive sales targeting vulnerable individuals:
“The structured settlement purchasing company told me not to mention [being hospitalized] to the judge… I'm slowly starting to realize I was taken advantage of.”(Reddit)
Reddit caution: sales pressure and lack of transparency can lead to regrettable outcomes.
Summary of Top Players
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Well-known, established brands: J.G. Wentworth, Peachtree, Stone Street Capital
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Fast and focused: Fairfield Funding, DRB Capital
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Smaller/personalized: RSL Funding, CBS/Novation
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Highly rated alternatives: USClaims, Annuity Transfers, CBC
Final Thoughts
Selling your structured settlement can be a viable option—but it’s essential to go in armed with knowledge and caution. Compare multiple offers, check credentials, fully understand fees, and consult trusted professionals before proceeding. If you’d like help narrowing down based on your state or needs, I’m here to assist further.