SSPA Reforms in Georgia & Elsewhere
June 24, 2021

Not as great as you think...

The Georgia SSPA changes, mirroring recent changes to Louisiana, are generally a step in the right direction when taken at face value. There are elements of oligopoly promotion, exclusion of fair competition, and the like, but that’s not for today. Instead, we need to address an unseen and more insidious element of standardization in SSPA’s without regard for the practical realities of each state: uniform requirements for hearings where the payee is domiciled.
 
Well, that’s a non-starter, isn’t it? Who doesn’t agree with such a basic measure? It’s meant to keep all that evil forum shopping at bay! For those of us in more urban areas with properly staffed and regularly scheduled courts, it’s inconceivable that this could be a bad thing. For much of Georgia and other more rural states, though, it is, for the simple fact that they do not have properly staffed or regularly scheduled court. In fact, in many rural areas of Georgia, specifically, they only have court availability a few times a year. This may seem fine for more routine cases that courts hear, but its grossly unfair for those with financial emergencies that require the factoring vehicle to solve. The entire basis of IRC 5891, the factoring statute, revolves around recognizing and addressing time sensitive financial needs faced by annuitants with no recourse but to cash out part or all of their structures. It’s simply unrealistic to expect that people in these situations will be able to last 4-8 months on a tiny rural docket where they’re domiciled. In other words, we must face an ugly, uncomfortable truth:
 
Sometimes to properly serve the annuitant’s financial needs we need to move their hearing into a court that will actually hear it within a reasonable time frame.
“Forum shoppers!” you cry. Fair enough. But in this case, it’s a matter of actually helping the annuitant in need, or letting them face financial ruin because the means available wasn’t ideal.
 
Like most laws, the Georgia SSPA isn’t perfect, but we’re not demanding a total rewrite here or anywhere else. A simple amendment could be added to address this in any state where the issue is present, one that accounts for the time sensitive nature of the issues annuitants face and, in the event that a court can’t set a hearing within a reasonable time when in a rural county, the annuitant be permitted to move the hearing to a nearby jurisdiction that can address it in a more timely manner. Simple, clean, understanding, or, in a word: reasonable. That’s the entire basis of factoring as an option.

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October 22, 2026
Back in May, John Oliver closed his segment by proposing that a one-time independent guardian or advisor review every sale before it happens, and a handful of states already appoint ad litems to do something close to it. On paper it's hard to argue with: a court-appointed advisor canvasses the market and makes sure the annuitant walks away with the highest offer on the table. We'd love to tell you it works. In practice, it too often produces the opposite of what it promises. Here's what actually happens when an ad litem "shops the market." The ad litem, who as a rule knows the courtroom far better than they know factoring or finance, solicits competing bids and takes the best one. But the market they think they're canvassing isn't the market that exists. Big players, such as those with a family of companies, operate under enough names that a fistful of "competing" offers can all trace back to the same firm — a point we raised about industry aliases a decade ago, and one a Kiplinger column echoed this past June. The ad litem believes they've run a wide, competitive canvass. Often, they've just collected several quotes from the same house. It gets worse where the competition is real. In the few jurisdictions that mandate ad litems, a dominant firm, and one in particular, can afford to bid below its own cost — not to serve the annuitant, but to win the deal and bleed the legitimate competitors who can't match a rate that loses money. It absorbs those losses on the strength of the notoriously poor deals it writes everywhere ad litems aren't required. Do that long enough and the smaller ethical firms simply leave those markets or leave the business altogether. Once the competition is gone, the "best available rate" is whatever the last firm standing cares to offer, and it’s always the big one with its support cast of companies — which nullifies the entire reason for appointing an ad litem to find the best deal in the first place. The reform meant to guarantee competition ends up quietly strangling it. If that pattern sounds familiar, it should: reforms in this industry have a long habit of ending up as a gift to its biggest players. So no — we don't champion the guardian ad litem. Not because independent advice is a bad idea; it's a fine one. It's because an advisor who canvasses a rigged market and doesn't know the finance well enough to see that it's rigged, isn't the safeguard everyone assumes. The protection that actually works costs nothing and predates all of this: education and a referral. An annuitant should first hear about factoring from the structured-settlement broker who built the annuity, and that broker should refer only to factoring professionals with a clean, ethical record — no court appointment, no cold calls, no counterfeit competition, just a trusted professional pointing the annuitant toward one we'd put our name behind.
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