Full text and statutory guidelines for the Model State Structured Settlement Protection Act.
The Wisconsin Model State Structured Settlement Protection Act is a legislative framework that regulates the transfer of structured settlement payment rights. It is designed to ensure consumer protection for individuals receiving structured settlement payments and seeks to establish fair and transparent guidelines for the buying and selling of these payment rights. The Act aims to strike a balance between the need for individuals to access their settlement proceeds and the need to protect them from predatory practices. Under the Wisconsin Model State Structured Settlement Protection Act, there are different types of transactions that fall under its purview. These can include transfers, assignments, or sales of structured settlement payment rights. Transfers involve the direct sale of future structured settlement payments in exchange for a lump sum amount, while assignments enable the transfer of specific payment rights to a third party for various reasons, such as debt settlement or financial planning. The Act lays out specific procedures and requirements for these transactions in order to safeguard the interests of structured settlement recipients. It mandates that any transaction must be reviewed and approved by a state court to ensure fairness and protect against wrongful exploitation. The court examines factors such as the payee's best interests, financial capability, and the suitability of the proposed transfer. Additionally, the Act mandates that individuals who intend to transfer their structured settlement payments must receive independent professional advice. This helps ensure that they fully understand the consequences, benefits, and potential drawbacks of the proposed transaction. By providing a legal framework and guidelines, the Wisconsin Model State Structured Settlement Protection Act aims to promote transparency, fairness, and consumer protection in the structured settlement market. It sets clear standards for market participants, allows individuals to access their settlement proceeds when needed, and safeguards against potential risks and abuses that may arise in such transactions.
