Multiple Bids Protect Plaintiffs Who Need to Sell Structured Settlements. When it comes to getting the best deal, capitalism is key. Competition in the free market serves to benefit the consumer by bringing the best deal to the surface. And, those who don’t rise with the tide of competition will fall. When a plaintiff needs to sell his or her structured settlement, he or she is entering into an unregulated market where the results – i.e. the return – could be disastrous if entered into blindly or without generating a little old fashioned competition in the form of multiple bids.
There is a vast and very divergent array of secondary market factoring companies. There are big investment houses that gobble up annuities and structured settlements at high discount rates without regard to the seller, and then there are companies who want to be the alternative. One of the best ways consumers can protect themselves is to get second bids, as such bids will give them a point of reference for what is fair and reasonable. Only through such comparison can consumers really know if what they are getting is competitive. Let the marketplace do its job through brisk competition, which is only going to result in better service and better rates for the seller.