Why is the structured settlement secondary market so different from the primary market? We can only assume the main reason to be that money is the big differentiator followed by regulation. In unregulated markets things tend to get a tad out of control. In the case of the payday loan lenders they went unregulated and started to collect ungodly amounts of interest from borrowers that broke usury laws in many states. When you look at the primary market you have financial advisors who are looking to place accident victims in a steady stream of payments that will benefit them for years to come. With the secondary market you have a bunch of salesman and money grubbing individuals who are out to deepen your pockets and theirs at the same time when you need money the most.
Is it that the settlement payments these people are receiving is not enough and thus the reason for the secondary market? We can come up with many theories but at the end of the day those looking to sell off their future payments in the secondary market are extremely glad that this market exists and they could care less the name of the company but rather the fact that they are getting what they want at the end of the day: MONEY.
The secondary market is ripe with fraudsters and scam artists but then again so is the primary market that issues these payments. Whether it’s the brokers, lawyers, expert witness in the case or anybody else who acted out of dishonesty then you can certainly know that any industry has slightly shady characters.