Matter of Washington Sq. Financial v. Mejia

QUEENS COUNTY
Consumer Protection

New York Law Journal

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Justice Charles Markey

Washington Sq. Financial sought approval for the transfer of certain structured settlement payments from payee Mejia under the Structured Settlement Protection Act (SSPA). The court found the application complied with the procedural mandates of the SSPA. Despite same, it noted it must still determine if the proposed transfer was in the payee's best interest, and fair and reasonable. The court noted the transfer of $42,875.12 for a lump sum of $19,823 represented an annual discount rate of 16.66 percent, stating petitioner failed to show such rate was fair and reasonable within the SSPA. It stated the 20 year old Mejia, who was single with no dependents stated she intended to use the funds to buy a home. Yet, the court noted Mejia failed to identify the property, or what the mortgage payments would be or how she would pay for them. Further, Mejia failed to supply any information regarding her employment, education or skills, and the court noted Mejia appeared to have no other source of income or assets to financially afford a home. Also, Mejia chose not to consult with an independent professional advisor concerning the transfer. Thus, the court ruled the transfer was not in Mejia's best interest, denying approval.

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