Lottery Winners and Predatory Lenders
Sports & Recreations → Casino-Gaming
- Author Anthony Wayne
- Published April 2, 2010
- Word count 410
Lottery Winners and Predatory Lenders
We have all seen the ads on late night by predatory lenders offering cash advanced for those who have received various settlements from lawsuits and lottery winnings. Many lotteries pay out jackpots over a period of years and it is those structured agreements that are targeted by predatory lenders. Payments by these companies range from as much as 90 cents on the dollar to as little as 30 cents on the dollar. Essentially the lottery winner assigns the lottery payments to the lender for a much smaller lump sum. Many of these lenders monitor lottery winnings and lawsuit settlements and use hard sell tactics to convince the victim to take a smaller lump sum payment.
Last year a New York man won $2,000 a week for life in a $5 scratch off lottery game. John Borrel of Graniteville is being sued by a Florida company that is alleging that Borrel did not pay back $10,000 in cash received against his lottery winnings. The lawsuit filed by Encore Funding LLC seeks the original $10,000 plus 18% interest and legal fees which are likely to be considerable. The lawsuit alleges breach of contract and 'unjust enrichment' whatever that means. According to the court Borrel, 38, won a minimum of $2 million to be paid in $26,000 quarterly installments. The lottery payouts continue if the winner lives more than two decades.
In October Borrel entered into two separate contracts for cash advances of $5,000 each. Encore's lawyer said the company and Borrel are working out an agreement where Encore would pay Borrel for a portion of his lottery winnings from 2018 through 2027. In return Borrel would assign the lottery payments to Encore. The agreement also requires spousal consent and Borrel had told the company he is not married.
This situation highlights the difficulties lottery winners can get themselves into by seeking large cash payments financed by a large structured lottery settlement. Any lottery winner considering a similar move should check out all the terms and conditions of any contract or they could easily find themselves involved in a complicated expensive lawsuit. Most financial experts advise lottery winners to see a legitimate financial planner and get competent advice.
When buying lottery tickets players need to consider what actions they would take if they found themselves sudden millionaires. There are plenty of scammers waiting to take advantage of big winners. A good financial planner or adviser is a must. When buying lottery tickets it is always a good idea to plan ahead.
http://www.luckylotto.com all rights reserved 2010. Your number one source for buying lottery tickets online
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